H05092'03 (S-3)

HB-5319, As Passed Senate, September 29, 2004

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5319

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 the title and section 10 (MCL 247.660), the title as

amended by 1997 PA 79 and section 10 as amended by 2003 PA 151;

and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 TITLE

2 An act to provide for the classification of all public

3 roads, streets, and highways in this state, and for the revision

4 of that classification and for additions to and deletions from

5 each classification; to set up and establish the Michigan

6 transportation fund; to provide for the deposits in the Michigan

7 transportation fund of specific taxes on motor vehicles and motor

8 vehicle fuels; to provide for the allocation of funds from the

9 Michigan transportation fund and the use and administration of

10 the fund for transportation purposes; to set up and establish the

11 truck safety fund; to provide for the allocation of funds from

12 the truck safety fund and administration of the fund for truck

13 safety purposes; to set up and establish the Michigan truck

14 safety commission; to establish certain standards for road

1 contracts for certain businesses; to provide for the continuing

2 review of transportation needs within the state; to authorize the

3 state transportation commission, counties, cities, and villages

4 to borrow money, issue bonds, and make pledges of funds for

5 transportation purposes; to authorize counties to advance funds

6 for the payment of deficiencies necessary for the payment of

7 bonds issued under this act; to provide for the limitations,

8 payment, retirement, and security of the bonds and pledges; to

9 provide for appropriations and tax levies by counties and

10 townships for county roads; to authorize contributions by

11 townships for county roads; to provide for the establishment and

12 administration of the state trunk line fund, ~~critical~~ local

13 bridge fund, comprehensive transportation fund, and certain other

14 funds; to provide for the deposits in the state trunk line fund,

15 critical bridge fund, comprehensive transportation fund, and

16 certain other funds of money raised by specific taxes and fees;

17 to provide for definitions of public transportation functions and

18 criteria; to define the purposes for which Michigan

19 transportation funds may be allocated; to provide for Michigan

20 transportation fund grants; to provide for review and approval of

21 transportation programs; to provide for submission of annual

22 legislative requests and reports; to provide for the

23 establishment and functions of certain advisory entities; to

24 provide for conditions for grants; to provide for the issuance of

25 bonds and notes for transportation purposes; to provide for the

26 powers and duties of certain state and local agencies and

27 officials; to provide for the making of loans for transportation

1 purposes by the state transportation department and for the

2 receipt and repayment by local units and agencies of those loans

3 from certain specified sources; and to repeal acts and parts of

4 acts.

5 Sec. 10. (1) A fund to be known as the Michigan

6 transportation fund is established and shall be set up and

7 maintained in the state treasury as a separate fund. Money

8 received and collected under the motor fuel tax act, 2000 PA 403,

9 MCL 207.1001 to 207.1170, except a license fee provided in that

10 act, and a tax, fee, license, and other money received and

11 collected under sections 801 to 810 of the Michigan vehicle code,

12 1949 PA 300, MCL 257.801 to 257.810, except a truck safety fund

13 fee provided in section 801(1)(k) of the Michigan vehicle code,

14 1949 PA 300, MCL 257.801, and money received under the motor

15 carrier act, 1933 PA 254, MCL 475.1 to 479.43, shall be deposited

16 in the state treasury to the credit of the Michigan

17 transportation fund. In addition, income or profit derived from

18 the investment of money in the Michigan transportation fund shall

19 be deposited in the Michigan transportation fund. Except as

20 provided in this act, no other money, whether appropriated from

21 the general fund of this state or any other source, shall be

22 deposited in the Michigan transportation fund. Except as

23 otherwise provided in this section, the legislature shall

24 appropriate funds for the necessary expenses incurred in the

25 administration and enforcement of the motor fuel tax act, 2000 PA

26 403, MCL 207.1001 to 207.1170, the motor carrier act, 1933 PA

27 254, MCL 475.1 to 479.43, and sections 801 to 810 of the Michigan

1 vehicle code, 1949 PA 300, MCL 257.801 to 257.810. Funds

2 appropriated for necessary expenses shall be based upon

3 established cost allocation methodology that reflects actual

4 costs. Appropriations for the necessary expenses incurred by the

5 department of state in administration and enforcement of sections

6 801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL 257.801

7 to 257.810, shall be made from the Michigan transportation fund

8 and from funds in the transportation administration collection

9 fund created in section 810b of the Michigan vehicle code, 1949

10 PA 300, MCL 257.810b. Appropriations from the Michigan

11 transportation fund for the necessary expenses incurred by

12 department of state in administration and enforcement of sections

13 801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL 257.801

14 to 257.810, shall not exceed $20,000,000.00 per state fiscal

15 year. All money in the Michigan transportation fund is

16 apportioned and appropriated in the following manner:

17 (a) Not more than $3,000,000.00 as may be annually

18 appropriated each fiscal year to the state trunk line fund for

19 subsequent deposit in the rail grade crossing account.

20 (b) Not less than $3,000,000.00 each year to the ~~critical~~

21 local bridge fund established in ~~section 11b~~ subsection (5) for

22 the purpose of payment of the principal, interest, and redemption

23 premium on any notes or bonds issued by the state transportation

24 commission under section 11b.

25 (c) Revenue from 3 cents of the tax levied under section 8

26 8(1)(a) of the motor fuel tax act, 2000 PA 403, MCL 207.1008, to

27 the state trunk line fund, county road commissions, and cities

1 and villages in the percentages provided in subdivision (i).

2 (d) ~~Revenue~~ Until September 30, 2004, all of the revenue

3 from 1 cent of the tax levied under section 8 8(1)(a) of the

4 motor fuel tax act, 2000 PA 403, MCL 207.1008, to the state trunk

5 line fund for repair of state bridges under section 11.

6 Beginning October 1, 2004 and continuing through September 30,

7 2005, 3/4 of the revenue from 1 cent of the tax levied under

8 section 8(1)(a) of the motor fuel tax act, 2000 PA 403, MCL

9 207.1008, shall be appropriated to the state trunk line fund for

10 the repair of state bridges under section 11, and 1/4 of the

11 revenue from 1 cent of the tax levied under section 8(1)(a) of

12 the motor fuel tax act, 2000 PA 403, MCL 207.1008, shall be

13 appropriated to the local bridge fund created in subsection (5)

14 for distribution only to cities, villages, and county road

15 commissions. Beginning October 1, 2005, 1/2 of the revenue from 1

16 cent of the tax levied under section 8(1)(a) of the motor fuel

17 tax act, 2000 PA 403, MCL 207.1008, shall be appropriated to the

18 state trunk line fund for the repair of state bridges under

19 section 11, and 1/2 of the revenue from 1 cent of the tax levied

20 under section 8(1)(a) of the motor fuel tax act, 2000 PA 403, MCL

21 207.1008, shall be appropriated to the local bridge fund created

22 in subsection (5) for distribution only to cities, villages, and

23 county road commissions.

24 (e) $43,000,000.00 to the state trunk line fund for debt

25 service costs on state of Michigan projects.

26 (f) Except as provided in subsection (4), 10% to the

27 comprehensive transportation fund for the purposes described in

1 section 10e.

2 (g) $5,000,000.00 to the local bridge fund established in

3 subsection (5) for distribution only to the local bridge advisory

4 board, the regional bridge councils, cities, villages, and county

5 road commissions.

6 (h) ~~(g)~~ $36,775,000.00 to the state trunk line fund for

7 subsequent deposit in the transportation economic development

8 fund, and, as of September 30, 1997, with first priority for

9 allocation to debt service on bonds issued to fund transportation

10 economic development fund projects. In addition, beginning

11 October 1, 1997, $3,500,000.00 is appropriated from the Michigan

12 transportation fund to the state trunk line fund for subsequent

13 deposit in the transportation economic development fund to be

14 used for economic development road projects in any of the

15 targeted industries described in section 9(1)(a) of 1987 PA 231,

16 MCL 247.909.

17 (i) ~~(h)~~ Not less than $33,000,000.00 as may be annually

18 appropriated each fiscal year to the local program fund created

19 in section 11e.

20 (j) ~~(i)~~ The balance of the Michigan transportation fund as

21 follows, after deduction of the amounts appropriated in

22 subdivisions (a) through ~~(h)~~ (i) and section 11b:

23 (i) 39.1% to the state trunk line fund for the purposes

24 described in section 11.

25 (ii) 39.1% to the county road commissions of the state.

26 (iii) 21.8% to the cities and villages of the state.

27 (2) The money appropriated pursuant to this section shall be

1 used for the purposes as provided in this act and any other

2 applicable act. Subject to the requirements of section 9b, the

3 department shall develop programs in conjunction with the

4 Michigan state chamber of commerce and the Michigan minority

5 business development council to assist small businesses,

6 including those located in enterprise zones and those located in

7 empowerment zones as determined under federal law, as defined by

8 law in becoming qualified to bid.

9 (3) Thirty-one and one-half percent of the funds appropriated

10 to this state from the federal government pursuant to 23 ~~U.S.C.~~

11 USC 157, commonly known as minimum guarantee funds, shall be

12 allocated to the transportation economic development fund, if

13 such an allocation is consistent with federal law. These funds

14 shall be distributed 16-1/2% for development projects for rural

15 counties as defined by law and 15% for capacity improvement or

16 advanced traffic management systems in urban counties as defined

17 by law. Federal funds allocated for distribution under this

18 section shall be eligible for obligation and use by all

19 recipients as defined by the transportation equity act for the

20 21st century, Public Law 105-178. ~~, Stat. 107.~~

21 (4) For the fiscal year beginning October 1, 2003 only, the

22 apportionment of 10% of Michigan transportation fund money to the

23 comprehensive transportation fund as provided in subsection

24 (1)(f) shall be reduced by $10,000,000.00 and the $10,000,000.00

25 shall be transferred to the state trunk line fund for capacity

26 improvements to state trunk line highways.

27 (5) A fund to be known as the local bridge fund is

1 established and is set up and maintained in the state treasury as

2 a separate fund. The money appropriated to the local bridge fund

3 and the interest accruing to that fund shall be expended for the

4 local bridge program. The purpose of the fund is to provide

5 financial assistance to highway authorities for the preservation,

6 improvement, or reconstruction of existing bridges or for the

7 construction of bridges to replace existing bridges in whole or

8 part. The money in the local bridge fund is not subject to

9 section 12(15) or 13(5). The local bridge advisory board is

10 created and shall consist of 6 voting members appointed by the

11 state transportation commission and 2 nonvoting members appointed

12 by the state transportation department. The board shall include

13 3 members from the county road association of Michigan, 1 member

14 who represents counties with populations 65,000 or greater, 1

15 member who represents counties with populations greater than

16 30,000 and less than 65,000, and 1 member who represents counties

17 with populations of 30,000 or less. Three members shall be

18 appointed from the Michigan municipal league, 1 member who

19 represents cities with a population 75,000 or greater, 1 member

20 who represents cities with a population less than 75,000, and 1

21 member who represents villages. Each organization with voting

22 rights shall submit a list of nominees in each population

23 category to the state transportation commission. The state

24 transportation commission shall make the appointments from the

25 lists submitted under this subsection. Names shall be submitted

26 within 45 days after October 1, 2004. The state transportation

27 commission shall make the appointments by January 30, 2005.

1 Voting members shall be appointed for 2 years. The chairperson

2 of the board shall be selected from among the voting members of

3 the board. In addition to the 2 nonvoting members, the

4 department shall provide qualified administrative staff and

5 qualified technical assistance to the board.

6 (6) Beginning October 1, 2005, no less than 5% and no more

7 than 15% of the funds received in the local bridge fund may be

8 used for critical repair of large bridges and emergencies as

9 determined by the local bridge advisory board. Beginning October

10 1, 2005, funds remaining after the funds allocated for critical

11 large bridge repair and emergencies are deducted shall be

12 distributed by the board to the regional bridge councils created

13 under this section. One regional council shall be formed for

14 each department of transportation region as those regions exist

15 on October 1, 2004. The regional councils shall consist of 2

16 members of the county road association of Michigan from counties

17 in the region, 2 members of the Michigan municipal league from

18 cities and villages in the region, and 1 member of the state

19 transportation department in each region. The members of the

20 state transportation department shall be nonvoting members who

21 shall provide qualified administrative staff and qualified

22 technical assistance to the regional councils.

23 (7) Beginning October 1, 2005, funds in the local bridge fund

24 after deduction of the amounts set aside for critical repair of

25 large bridges and emergency repairs shall be distributed among

26 the regional bridge councils according to all of the following

27 ratios, which shall be assigned a weight expressed as a

1 percentage as determined by the board, with each ratio receiving

2 no greater than a 50% weight and no less than a 25% weight:

3 (a) A ratio with a numerator that is the total number of

4 local bridges in the region and a denominator that is the total

5 number of local bridges in this state.

6 (b) A ratio with a numerator that is the total local bridge

7 deck area in the region and a denominator that is the total local

8 bridge deck area in this state.

9 (c) A ratio with a numerator that is the total amount of

10 structurally deficient local bridge deck area in the region and a

11 denominator that is the total amount of structurally deficient

12 local bridge deck area in this state.

13 (8) Beginning October 1, 2005, the regional bridge councils

14 shall allocate the funds received from the board for the

15 preservation, improvement, and reconstruction of existing bridges

16 or for the construction of bridges to replace existing bridges in

17 whole or in part in each region.

18 (9) Beginning January 1, 2007 and each January after 2007,

19 the department shall submit a report to the chair and the

20 minority vice-chair of the appropriations committees of the

21 senate and the house of representatives, and to the standing

22 committees on transportation of the senate and the house of

23 representatives, on all of the following activities for the

24 previous state fiscal year:

25 (a) A listing of how much money was dedicated for emergency

26 and large bridge repair.

27 (b) A listing of what emergency and large bridge repair

1 projects were funded.

2 (c) The actual weights used in the calculation required under

3 subsection (7).

4 (d) A listing of the total money distributed to each region.

5 (e) A listing of what specific projects were funded pursuant

6 to subsection (8).

7 (10) The state transportation commission shall borrow money

8 and issue notes or bonds in an amount of not less than

9 $30,000,000.00 to supplement the funding provided for the local

10 bridge program under subsection (6). The bonds or notes issued

11 pursuant to this subsection may be issued by the commission for

12 any purpose for which other local bridge funds may be used under

13 this section. The bonds or notes authorized by this subsection

14 shall be issued by resolution of the state transportation

15 commission consistent with the requirements of section 18b.

16 (11) The state transportation department shall promulgate

17 rules pursuant to the administrative procedures act of 1969, 1969

18 PA 306, MCL 24.201 to 24.328, governing the administration of the

19 local bridge program. The rules shall set forth the eligibility

20 criteria for financial assistance under the program and other

21 matters related to the program that the department considers

22 necessary and desirable. The department shall take into

23 consideration the availability of federal aid and other financial

24 resources of the highway authority responsible for the bridge,

25 the importance of the bridge to the highway, road, or street

26 network, and the condition of the existing bridge.

27 (12) Beginning October 1, 2004, the revenue appropriated to