January 26, 2012, Introduced by Rep. Talabi 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
classification; to set up and establish the Michigan transportation
fund; to provide for the deposits in the Michigan transportation
fund of specific taxes on motor vehicles and motor vehicle fuels;
to provide for the allocation of funds from the Michigan
transportation fund and the use and administration of the fund for
transportation purposes; to promote safe and efficient travel for
motor vehicle drivers, bicyclists, pedestrians, and other legal
users of roads, streets, and highways; to set up and establish the
truck safety fund; to provide for the allocation of funds from the
truck safety fund and administration of the fund for truck safety
purposes; to set up and establish the Michigan truck safety
commission; to establish certain standards for road contracts for
certain businesses; to provide for the continuing review of
transportation needs within the state; to authorize the state
transportation commission, counties, cities, and villages to borrow
money, issue bonds, and make pledges of funds for transportation
purposes; to authorize counties to advance funds for the payment of
deficiencies necessary for the payment of bonds issued under this
act; to provide for the limitations, payment, retirement, and
security of the bonds and pledges; to provide for appropriations
and tax levies by counties and townships for county roads; to
authorize contributions by townships for county roads; to provide
for the establishment and administration of the state trunk line
fund, local bridge fund, comprehensive transportation fund, and
certain other funds; to provide for the deposits in the state trunk
line fund, critical bridge fund, comprehensive transportation fund,
and certain other funds of money raised by specific taxes and fees;
to provide for definitions of public transportation functions and
criteria; to define the purposes for which Michigan transportation
funds may be allocated; to provide for Michigan transportation fund
grants; to provide for review and approval of transportation
programs; to provide for submission of annual legislative requests
and reports; to provide for the establishment and functions of
certain advisory entities; to provide for conditions for grants; to
provide for the issuance of bonds and notes for transportation
purposes; to provide for the powers and duties of certain state and
local agencies and officials; to provide for the making of loans
for transportation purposes by the state transportation department
and for the receipt and repayment by local units and agencies of
those loans from certain specified sources; and to repeal acts and
parts of acts,"
by amending the title and sections 10c and 12 (MCL 247.660c and
247.662), the title as amended by 2010 PA 135, section 10c as
amended by 2010 PA 257, and section 12 as amended by 2010 PA 143,
and by adding sections 10q, 10r, and 10s.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
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 create the commercial corridor fund; to
provide for deposits into the commercial corridor fund of specific
taxes on motor vehicles and motor vehicle fuels; to provide for the
allocation of funds from the commercial corridor fund and for the
use and administration of the fund for transportation purposes; to
promote safe and efficient travel for motor vehicle drivers,
bicyclists, pedestrians, and other legal users of roads, streets,
and highways; to set up and establish the truck safety fund; to
provide for the allocation of funds from the truck safety fund and
administration of the fund for truck safety purposes; to set up and
establish the Michigan truck safety commission; to establish
certain standards for road contracts for certain businesses; to
provide for the continuing review of transportation needs within
the state; to authorize the state transportation commission,
counties, cities, and villages to borrow money, issue bonds, and
make pledges of funds for transportation purposes; to authorize
counties to advance funds for the payment of deficiencies necessary
for the payment of bonds issued under this act; to provide for the
limitations, payment, retirement, and security of the bonds and
pledges; to provide for appropriations and tax levies by counties
and townships for county roads; to authorize contributions by
townships for county roads; to provide for the establishment and
administration of the state trunk line fund, local bridge fund,
comprehensive transportation fund, and certain other funds; to
provide for the deposits in the state trunk line fund, critical
bridge fund, comprehensive transportation fund, and certain other
funds of money raised by specific taxes and fees; to provide for
definitions of public transportation functions and criteria; to
define the purposes for which Michigan transportation funds may be
allocated; to provide for Michigan transportation fund grants; to
provide for review and approval of transportation programs; to
provide for submission of annual legislative requests and reports;
to provide for the establishment and functions of certain advisory
entities; to provide for conditions for grants; to provide for the
issuance of bonds and notes for transportation purposes; to provide
for the powers and duties of certain state and local agencies and
officials; to provide for the making of loans for transportation
purposes by the state transportation department and for the receipt
and repayment by local units and agencies of those loans from
certain specified sources; and to repeal acts and parts of acts.
Sec. 10c. As used in this act:
(a) "Urban or rural area" means a contiguous developed area,
including the immediate surrounding area, where transportation
services should reasonably be provided presently or in the future;
the area within the jurisdiction of an eligible authority; or for
the purpose of receiving funds for public transportation, a
contiguous developed area having a population of less than 50,000
that has an urban public transportation program approved by the
state
transportation department and for
which the state
transportation commission determines that public transportation
services should reasonably be provided presently or in the future.
(b) "Eligible authority" means an authority organized under
the metropolitan transportation authorities act of 1967, 1967 PA
204, MCL 124.401 to 124.426.
(c) "Eligible governmental agency" means a county, city, or
village or an authority created under 1963 PA 55, MCL 124.351 to
124.359; the urban cooperation act of 1967, 1967 (Ex Sess) PA 7,
MCL 124.501 to 124.512; 1967 (Ex Sess) PA 8, MCL 124.531 to
124.536; 1951 PA 35, MCL 124.1 to 124.13; the public transportation
authority act, 1986 PA 196, MCL 124.451 to 124.479; or the revenue
bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140.
(d) "Transit vehicle" means a bus, rapid transit vehicle,
railroad car, street railway car, water vehicle, taxicab, or other
type of public transportation vehicle or individual unit, whether
operated singly or in a group which provides public transportation.
(e) "Transit vehicle mile" means a transit vehicle operated
for 1 mile in public transportation service including demand
actuated and line-haul vehicle miles.
(f) "Demand actuated vehicle" means a bus or smaller transit
vehicle operated for providing group rides to members of the
general public paying fares individually, and on demand rather than
in regularly scheduled route service.
(g) "Demand actuated vehicle mile" means a demand actuated
vehicle operated for 1 mile in service to the general public.
(h) "Public transportation", "comprehensive transportation",
"public transportation service", "comprehensive transportation
service", "public transportation purpose", or "comprehensive
transportation purpose" means the movement of people and goods by
publicly or privately owned water vehicle, bus, railroad car,
street railway, aircraft, rapid transit vehicle, taxicab, or other
conveyance which provides general or special service to the public,
but not including charter or sightseeing service or transportation
which is exclusively for school purposes. Public transportation,
public transportation services, or public transportation purposes;
and comprehensive transportation, comprehensive transportation
services, or comprehensive transportation purposes as defined in
this subdivision are declared by law to be transportation purposes
within the meaning of section 9 of article IX of the state
constitution of 1963.
(i) "State transportation commission" means the state
transportation commission established in section 28 of article V of
the state constitution of 1963.
(j)
"Governmental unit" means the state transportation
department, the state transportation commission, a county road
commission, a city, or a village.
(k) "Department" or "department of transportation" means the
state transportation department, the principal department of state
government created under section 350 of the executive organization
act of 1965, 1965 PA 380, MCL 16.450.
(l) "Preservation" means an activity undertaken to preserve the
integrity of the existing roadway system. Preservation does not
include new construction of highways, roads, streets, or bridges, a
project that increases the capacity of a highway facility to
accommodate that part of traffic having neither an origin nor
destination within the local area, widening of a lane width or
more, or adding turn lanes of more than 1/2 mile in length.
Preservation includes, but is not limited to, 1 or more of the
following:
(i) Maintenance.
(ii) Capital preventive treatments.
(iii) Safety projects.
(iv) Reconstruction.
(v) Resurfacing.
(vi) Restoration.
(vii) Rehabilitation.
(viii) Widening of less than the width of 1 lane.
(ix) Adding auxiliary weaving, climbing, or speed change lanes.
(x) Modernizing intersections.
(xi) Adding auxiliary turning lanes of 1/2 mile or less.
(xii) Installing traffic signs in new locations, installing
signal devices in new locations, and replacing existing signal
devices.
(m) "Maintenance" means routine maintenance or preventive
maintenance, or both. Maintenance does not include capital
preventive treatments, resurfacing, reconstruction, restoration,
rehabilitation, safety projects, widening of less than 1 lane
width, adding auxiliary turn lanes of 1/2 mile or less, adding
auxiliary weaving, climbing, or speed-change lanes, modernizing
intersections, or the upgrading of aggregate surface roads to hard
surface roads. Maintenance of state trunk line highways does not
include streetlighting except for freeway lighting for traffic
safety purposes.
(n) "Routine maintenance" means actions performed on a regular
or controllable basis or in response to uncontrollable events upon
a highway, road, street, or bridge. Routine maintenance includes,
but is not limited to, 1 or more of the following:
(i) Snow and ice removal.
(ii) Pothole patching.
(iii) Unplugging drain facilities.
(iv) Replacing damaged sign and pavement markings.
(v) Replacing damaged guardrails.
(vi) Repairing storm damage.
(vii) Repair or operation of traffic signs and signal systems.
(viii) Emergency environmental cleanup.
(ix) Emergency repairs.
(x) Emergency management of road closures that result from
uncontrollable events.
(xi) Cleaning streets and associated drainage.
(xii) Mowing roadside.
(xiii) Control of roadside brush and vegetation.
(xiv) Cleaning roadside.
(xv) Repairing lighting.
(xvi) Grading.
(o) "Preventive maintenance" means a planned strategy of cost-
effective treatments to an existing roadway system and its
appurtenances that preserve assets by retarding deterioration and
maintaining functional condition without significantly increasing
structural capacity. Preventive maintenance includes, but is not
limited to, 1 or more of the following:
(i) Pavement crack sealing.
(ii) Micro surfacing.
(iii) Chip sealing.
(iv) Concrete joint resealing.
(v) Concrete joint repair.
(vi) Filling shallow pavement cracks.
(vii) Patching concrete.
(viii) Shoulder resurfacing.
(ix) Concrete diamond grinding.
(x) Dowel bar retrofit.
(xi) Bituminous overlays of 1-1/2 inches or less in thickness.
(xii) Restoration of drainage.
(xiii) Bridge crack sealing.
(xiv) Bridge joint repair.
(xv) Bridge seismic retrofit.
(xvi) Bridge scour countermeasures.
(xvii) Bridge painting.
(xviii) Pollution prevention.
(xix) New treatments as they may be developed.
(p) "County road commission" means the board of county road
commissioners elected or appointed pursuant to section 6 of chapter
IV of 1909 PA 283, MCL 224.6, or, in the case of a charter county
with a population of 750,000 or more with an elected county
executive that does not have a board of county road commissioners,
the county executive for ministerial functions and the county
commission provided for in section 14(1)(d) of 1966 PA 293, MCL
45.514, for legislative functions.
(q) "Capital preventive treatments" means any preventive
maintenance category project on state trunk line highways that
qualifies under the department's capital preventive maintenance
program.
(r) "Federal functional class" means a class or group of roads
that a road belongs to based on the character of traffic service
the road provides under section 1006 of the intermodal surface
transportation efficiency act of 1991, Public Law 102-240.
(s) "Local road agency" means 1 of the following:
(i) A county road commission or a county that has assumed the
duties of a county road commission.
(ii) A city or village receiving $50,000.00 or more from the
Michigan transportation fund in fiscal year 2012.
(iii) A city or village receiving less than $50,000.00 from the
Michigan transportation fund in fiscal year 2012 that elects by a
vote of its citizens at a general election to have jurisdiction
over streets within its boundaries exclusive of state trunk line
highways and county roads and to receive distributions from the
commercial corridor fund and the Michigan transportation fund and
that certifies that it is complying with the requirements of
section 18j.
(iv) A regional road agency created by an interlocal agreement
between 2 or more county road commissions under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512.
(v) A regional road agency created by an interlocal agreement
between 2 or more contiguous cities or villages under the urban
cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512, receiving a combined amount of $50,000.00 or more from the
Michigan transportation fund in fiscal year 2012.
Sec. 12. (1) The amount distributed to the county road
commissions shall be returned to the county treasurers in the
manner, for the purposes, and under the terms and conditions
specified in this section. The department and the county road
association of Michigan shall jointly develop incentives for
counties to establish statewide purchasing pools for the more
efficient use of Michigan transportation funds.
(2)
Each From the total amount
to be returned to the counties
from the Michigan transportation fund, each county road commission
shall be reimbursed in an amount up to $10,000.00 per year for the
sum paid to a licensed professional engineer employed or retained
by the county road commission in the previous year. The sum shall
be
returned to each county road commission certified by the state
transportation
department as complying with this
subsection
regarding the employment of an engineer.
(3)
An Until September 30,
2013, an amount equal to 1% of the
total amount returned to the county road commissions from the
Michigan transportation fund during the prior calendar year shall
be withheld annually from the counties' November monthly
distribution provided for in section 17, and the amount shall be
returned to the county road commissions for snow removal purposes
as provided in section 12a.
(4) An amount equal to 10% of the total amount returned to the
county road commissions from the Michigan transportation fund shall
be returned to each county road commission having county primary,
or
county local road, or both, mileage in the urban areas as
determined pursuant to section 12b. This sum shall be distributed
pursuant to section 12b. The return shall be in addition to the
amounts provided in subsections (6) and (7) and for the purposes
stated in those subsections.
(5) An amount equal to 4% of the total amount returned to the
county road commissions from the Michigan transportation fund shall
be returned to the county road commissions in the same percentages
as provided in subsection (7). All money returned to the county
road commissions as provided in this subsection shall be expended
by the county road commissions for the preservation, construction,
acquisition, and extension of county local road systems and shall
be in addition to the amounts provided in subsection (7).
(6) Seventy-five percent of the remainder of the total amount
to be returned to the counties from the Michigan transportation
fund shall be expended by each county road commission for the
preservation, construction, acquisition, and extension of the
county primary road system, including the acquisition of a
necessary right of way for the system, work incidental to the
system, and a roadside park or motor parkway appurtenant to the
system, and shall be returned to the counties as follows:
(a) Three-fourths of the amount in proportion to the amount
received
within the respective a county during the 12 months next
preceding the date of each monthly distribution, as specific taxes
upon registered motor vehicles under the Michigan vehicle code,
1949 PA 300, MCL 257.1 to 257.923.
(b) One-tenth of the amount in the same proportion that the
total mileage in the county primary road system of each county
bears to the total mileage in all of the county primary road
systems of the state.
(c) One eighty-third of the remaining 15% of the amount to
each county.
(7) The balance of the remainder of the total amount to be
returned to counties from the Michigan transportation fund shall be
expended by each county road commission for the preservation,
construction, acquisition, and extension of the county local road
system as defined by this act, including the acquisition of a
necessary right of way for the system, work incidental to the
system, and a roadside park or motor parkway appurtenant to the
system, and shall be returned to the counties as follows:
(a) Sixty-five percent of the amount in the same proportion
that the total mileage in the county local road system of each
county bears to the total mileage in all of the county local road
systems of the state.
(b) Thirty-five percent of the amount in the same proportion
that the total population outside of incorporated municipalities in
each county bears to the total population outside of incorporated
municipalities
in all of the counties of the state.
, according to
the
most recent statewide federal census as certified at the
beginning
of the state fiscal year.
(8) Money deposited in, or becoming a part of the county road
funds of a board of county road commissioners shall be expended
first
for the payment of principal and interest on the bonds, for
the payment of contractual contributions pledged for the payment of
bonds, for debt service requirements for the payment of contractual
contributions pledged for the payment of bonds, and for debt
service requirements for the payment of notes and loans in the
following order of priority:
(a) For the payment of contributions that have been pledged
for the payment of principal and interest on bonds required to be
made by a board of county road commissioners under a contract
entered
into under 1941 PA 205, MCL 252.51 to 252.64, which
contributions
have been pledged for the payment of the principal
and
interest on bonds issued under that act, or for the payment of
total debt service requirements upon notes issued by a board of
county road commissioners under 1943 PA 143, MCL 141.251 to
141.254.
(b) For the payment of principal and interest upon bonds
issued under section 18c, and the payment of contributions of a
board of county road commissioners that are pledged to the payment
of principal and interest on bonds issued after June 30, 1957 under
section 18c and contracts executed under section 18c, to be made
pursuant
to contracts entered into under section 18d. , which
contributions
are pledged to the payment of principal and interest
on
bonds issued after June 30, 1957, under the authorization of
section
18c and contracts executed pursuant to its provisions.
(c) For the payment of principal and interest upon loans
received
pursuant to section 11(7) 11, to the extent other funds
have not been made available for that payment.
(9) Beginning November 1, 2008, not to exceed 50% per year of
the amount returned to a county from the Michigan transportation
fund for use on the county primary road system may be expended,
with or without matching, on the county local road system of that
county. Except as otherwise provided in this subsection, beginning
September 30, 2010, not to exceed 30% per year of the amount
returned to a county for use on the county primary road system may
be expended, with or without matching, on the county local road
system of that county. An additional amount, not to exceed 20% per
year of the amount returned to a county for use on the county
primary road system, may be expended on the county local road
system of that county if there is an emergency or if the county
road commission determines that an additional 20% may be expended
on the county local road system. The county road commission may
attach any conditions to its determination if the determination is
for nonemergency purposes, including, but not limited to, a
requirement that the additional 20% expended on the county local
road system only be used to supplement funds from other sources.
Not to exceed 15% per year of the amount returned to a county for
expenditure on the county local road system may be used, with or
without matching, on the county primary road system of that county,
and not to exceed an additional 15% per year of the amount returned
to a county for expenditure on the county local road system, may,
in case of an emergency or with the approval of the county road
commission, be expended, with or without matching, on the county
primary road system of that county. An amount returned to a county
for
and on account of county local roads, under this section, in
excess of the total amount paid into the county treasury each year
by all of the townships of that county for and on account of the
county local roads pursuant to section 14(6) may be transferred to
and expended on the county primary road system of that county.
(10) Not less than 20% per year of the funds returned to a
county from the Michigan transportation fund by this section shall
be expended for snow and ice removal, the construction or
reconstruction of a new highway or existing highway, and the
acquisition of a necessary right of way for those highways, and
work incidental to those highways, or for the servicing of bonds
issued by the county for these purposes. Surplus funds may be
expended for the development, construction, or repair of an off-
street parking facility.
(11) Not more than 5% per year of the funds returned to a
county from the Michigan transportation fund for the county primary
road system and the county local road system shall be expended for
the maintenance, improvement, or acquisition of appurtenant
roadside parks and motor parkways.
(12) Funds returned to a county shall be expended by the
county road commission for the purposes provided in this section
and section 10r and shall be deposited by the county treasurer in a
designated county depository, in a separate account to the credit
of the county road fund, and shall be paid out only upon the order
of the county road commission, and interest accruing on the money
shall
become a part of , and be
deposited with the county road
fund.
(13)
In a county to which the funds are returned the function
of the county road commission shall be limited to the formation of
policy and the performance of the official duties imposed by law
and delegated by the county board of commissioners. A member of the
county road commission shall not be employed individually in any
other capacity for other duties with the county road commission.
(14) A county road commission may enter into an agreement with
a county road commission of an adjacent county and with a city or
village to perform work on a highway, road, or street, and with the
state
transportation department with
respect to a state trunk line
and connecting links of the state trunk line within the limits of
the county or adjacent to the county. The agreement may provide for
the performance by each contracting party of the work contemplated
by the contract including engineering services and the acquisition
of rights of way in connection with the work contemplated, by
purchase or condemnation, by any of the contracting parties in its
own name and the agreement may provide for joint participation in
the costs.
(15) Money distributed from the Michigan transportation fund
may be expended for construction purposes on county local roads
only to the extent matched by money from other sources. However,
money
distributed from the Michigan
transportation funds fund may
be expended for the construction of bridges on the county local
roads in an amount not to exceed 75% of the cost of the
construction
of local road bridges. This subsection does not apply
to
section 11b.
(16) Notwithstanding any other provision of this act, at least
90% of the state revenue returned annually to the county road
commission from the Michigan transportation fund less the amounts
described in subdivisions (a) to (e) shall be expended annually by
the county road commission for the preservation of highways, roads,
streets, and bridges, and for the payment of contractual
contributions pledged for the payment of bonds or portions of
bonds, debt service requirements for the payment of bonds or
portions of bonds, and debt service requirements for the payment of
notes and loans or portions of notes and loans issued or received
after July 1, 1983, for the purpose of providing funds for the
preservation of highways, roads, streets, and bridges. If an
appropriate
certificate is filed under subsection (19) (17)
but
only to the extent necessary, this subsection shall not prohibit
the use of any amount of state revenue returned annually to the
county road commissions for the payment of contractual
contributions pledged for the payment of bonds, for debt service
requirements for the payment of bonds, and for debt service
requirements for the payment of notes or loans, whenever issued or
received,
as specified under subsection (8). The amounts which that
are deducted from the state revenue returned to a county road
commission from the Michigan transportation fund, for the purpose
of the calculation required by this subsection are as follows:
(a) Amounts expended for the purposes described in subsection
(8) for bonds, notes, loans, or other obligations issued or
received before July 2, 1983.
(b) Amounts expended for the administrative costs of the
county road commission.
(c) Amounts expended for capital outlay projects for equipment
and buildings, and for the payment of contractual contributions
pledged for the payment of bonds, for debt service requirements for
the payment of bonds, and for debt service requirements for the
payment of notes and loans issued or received after July 1, 1983,
and for the purpose of providing funds for capital outlay projects
for equipment and buildings.
(d) Amounts expended for projects vital to the economy of the
local area or the safety of the public in the local area. Before
these amounts can be deducted, the governing body over the county
road commission or the county road commission, as applicable, shall
pass a resolution approving these projects. This resolution shall
state which projects will be funded and the cost of each project. A
copy of each approved resolution shall be forwarded immediately to
the department.
(e) Amounts expended in urban areas as determined pursuant to
section 12b.
(17)
As used in this subsection, "urban routes" means those
portions
of 2-lane county primary roads within an urban area which
has
average daily traffic in excess of 15,000. Notwithstanding any
other
provision of this act, except as provided in this subsection,
a
county road commission shall expend annually at least 90% of the
federal
revenue distributed to the use of the county road
commission
for highways, roads, streets, and bridges, less the
amount
expended on urban routes for other than preservation
purposes
and the amount expended for hard-surfacing of gravel roads
on
the federal-aid system, on the preservation of highways, roads,
streets,
and bridges. A county road commission may expend in a year
less
than 90% of the federal revenue distributed to the use of the
county
road commission for highways, roads, streets, and bridges,
less
the amount expended on urban routes for other than
preservation
purposes and the amount expended for hard-surfacing of
gravel
roads on the federal-aid system, on the preservation of
highways,
roads, streets, and bridges, if that year is part of a 3-
year
period in which at least 90% of the total federal revenue
distributed
in the 3-year period to the use of the county road
commission
for highways, roads, streets, and bridges, less the
amount
expended on urban routes for other than preservation
purposes
and the amount expended for hard-surfacing of gravel roads
on
the federal-aid system, is expended on the preservation of
highways,
roads, streets, and bridges. If a county road commission
expends
in a year less than 90% of the federal revenue distributed
to
the use of the county road commission for highways, roads,
streets,
and bridges, less the amount expended on urban routes for
other
than preservation purposes and the amount expended for hard-
surfacing
of gravel roads on the federal-aid system, on the
preservation
of highways, roads, streets, and bridges and that year
is
not a part of a 3-year period in which at least 90% of the total
federal
revenue distributed in the 3-year period to the use of the
county
road commission for highways, roads, streets, and bridges,
less
the amount expended on urban routes for other than
preservation
purposes and the amount expended for hard-surfacing of
gravel
roads on the federal-aid system, is expended on the
preservation
of highways, roads, streets, and bridges, the county
road
commission shall expend in each year subsequent to the 3-year
period
100%, or less in 1 year if sufficient for the purposes of
this
subsection, of the federal revenue distributed to the use of
the
county road commission for highways, roads, streets, and
bridges,
less the amount expended on urban routes for other than
preservation
purposes and the amount expended for hard-surfacing of
gravel
roads on the federal-aid system, on the preservation of
highways,
roads, streets, and bridges until the average percentage
spent
on the preservation of highways, roads, streets, and bridges
in
the 3-year period and the subsequent years, less the amount
expended
on urban routes for other than preservation purposes and
the
amount expended for hard-surfacing of gravel roads on the
federal-aid
system, is at least 90%. A year may be included in only
one
3-year period for the purposes of this subsection. The
requirements
of this subsection shall be waived if compliance would
cause
the county road commission to be ineligible according to
federal
law for federal revenue, but only to the extent necessary
to
make the county road commission eligible according to federal
law
for that revenue. For the purpose of the calculations required
by
this subsection, the amount expended on urban routes by a county
road
commission for other than preservation purposes and the amount
expended
for hard-surfacing of gravel roads on the federal-aid
system
shall be deducted from the total federal revenue distributed
to
the use of the county road commission.
(17) (18)
A county road commission shall
certify , which
certification
shall, for purposes of the validity of bonds and
notes,
be conclusive as to the matters stated therein, to the state
transportation
department on or before the
issuance of any bonds or
notes issued after July 1, 1983, pursuant to 1943 PA 143, MCL
141.251 to 141.254, 1941 PA 205, MCL 252.51 to 252.64, or section
18c or 18d, for purposes other than the preservation of highways,
roads, streets, and bridges and purposes other than the purposes
specified in subsection (16)(c) that its average annual debt
service requirements for all bonds and notes or portions of bonds
and notes issued after July 1, 1983, for purposes other than the
preservation of highways, roads, streets, and bridges and other
than for the purposes specified in subsection (16)(c), including
the bond or note to be issued does not exceed 10% of the funds
returned to the county road commission pursuant to this act, less
the amounts specified in subsection (16)(a), (b), and (c) during
the last completed fiscal year of the county road commission. A
certification by a county road commission under this subsection is,
for purposes of the validity of bonds and notes, conclusive as to
the matters stated in the certification. If the purpose for which
the bonds or notes are issued is changed after the issuance of the
notes or bonds, the change shall be made in such a manner to
maintain compliance with the certification required by this
subsection, as of the date the certificate was originally issued,
but no such change shall invalidate or otherwise affect the bonds
or notes with respect to which the certificate was issued or the
obligation to pay debt service on the bonds or notes.
(18) (19)
In each charter county to which
funds are returned
under this section, the responsibility for road improvement,
preservation, and traffic operation work, and the development,
construction, or repair of off-road parking facilities and
construction or repair of road lighting shall be coordinated by a
single administrator to be designated by the county executive who
shall
be is responsible for and shall represent represents the
charter
county in transactions with the state transportation
department pursuant to this act.
(19) (20)
Not more than 10% per year of all
of the funds
received by and returned to a county from any source for the
purposes of this section may be expended for administrative
expenses. A county that expends more than 10% for administrative
expenses in a year shall be subject to section 14(5) unless a
waiver is granted by the department of treasury. As used in this
subsection, "administrative expenses" means those expenses that are
not assigned including, but not limited to, specific road
construction or preservation projects and are often referred to as
general or supportive services. Administrative expenses shall not
include net equipment expense, net capital outlay, debt service
principal and interest, and payments to other state or local
offices which are assigned, but not limited to, specific road
construction projects or preservation activities.
(20) (21)
In addition to the financial
compliance audits
required by law, the department of treasury shall conduct
performance audits and make investigations of the disposition of
all state funds received by county road commissions, county boards
of commissioners, or any other county governmental agency acting as
the county road authority, for transportation purposes to determine
compliance with the terms and conditions of this act. Performance
audits shall be conducted according to government auditing
standards issued by the United States general accounting office.
The
department of treasury shall provide 6 months months' notice
to
the county road commission or county board of commissioners, as
applicable, of the standards to be used for audits performed under
this subsection prior to the fiscal year in which the audit is
conducted. The department shall notify the county road commission
or county board of commissioners of any subsequent changes to the
standards. County road commissions or county boards of
commissioners, as applicable, shall make available to the
department of treasury the pertinent records for the audit.
Sec. 10q. (1) Beginning October 1, 2012, a fund to be known as
the commercial corridor fund is created in the state treasury as a
separate fund. As provided in section 143 of the motor fuel tax
act, 2000 PA 403, MCL 207.1143, money received and collected under
the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170,
except for a license fee under that act shall be deposited in the
state treasury to the credit of the commercial corridor fund, as
provided in section 810 of the Michigan vehicle code, 1949 PA 300,
MCL 257.810, a tax, fee, license, or other money received and
collected under sections 801 to 810 of the Michigan vehicle code,
1949 PA 300, MCL 257.801 to 257.810, shall be deposited in the
state treasury to the credit of the commercial corridor fund.
Income or profit derived from the investment of money in the
commercial corridor fund shall be deposited in the commercial
corridor fund. Except as otherwise provided in this section, the
legislature shall appropriate funds for the necessary expenses
incurred in the administration and enforcement of the motor fuel
tax act, 2000 PA 403, MCL 207.1001 to 207.1170, the motor carrier
act, 1933 PA 254, MCL 475.1 to 479.43, and sections 801 to 810 of
the Michigan vehicle code, 1949 PA 300, MCL 257.801 to 257.810.
Funds appropriated for necessary expenses shall be based upon
established cost allocation methodology that reflects actual costs.
Appropriations for the necessary expenses incurred by the
department of state in administration and enforcement of sections
801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL 257.801
to 257.810, shall be made from the commercial corridor fund and
from the transportation administration collection fund created in
section 810b of the Michigan vehicle code, 1949 PA 300, MCL
257.810b. Combined appropriations from the Michigan transportation
fund and from the commercial corridor fund for necessary expenses
incurred by the department of state in administration and
enforcement of sections 801 to 810 of the Michigan vehicle code,
1949 PA 300, MCL 257.801 to 257.810, shall not exceed
$20,000,000.00 per state fiscal year. All money in the commercial
corridor fund is apportioned and appropriated in the following
manner:
(a) 10% to the comprehensive transportation fund for the
purposes described in section 10e.
(b) Beginning October 1, 2020, $40,275,000.00 to the state
trunk line fund for subsequent deposit in the transportation
economic development fund, with first priority for allocation to
debt service on bonds issued to fund transportation economic
development fund projects, with subsequent deposit in the
transportation economic development fund to be used for economic
development road projects in any of the targeted industries
described in section 9(1)(a) of 1987 PA 231, MCL 247.909.
(c) The balance of the commercial corridor fund as follows:
(i) 55% to the state trunk line fund for the purposes described
in section 11.
(ii) 45% to the local road agencies of the state.
(2) The money appropriated pursuant to this section shall be
used for the purposes provided in this act and any other applicable
act.
Sec. 10r. (1) The amount distributed from the commercial
corridor fund to county road commissions shall be returned to the
county treasurers in the manner and for the purposes specified in
this section. The amount distributed from the commercial corridor
fund to cities and villages shall be returned to the treasurers of
cities and villages in the manner and for the purposes specified in
this section.
(2) Beginning October 1, 2013, an amount equal to 1% of the
total amount returned to local road agencies from the Michigan
transportation fund and the commercial corridor fund during the
prior calendar year shall be withheld annually from the November
monthly distribution under section 17, and the amount shall be
returned to local road agencies for snow removal purposes,
including the purchase and maintenance of equipment for snow
removal. The amount to be distributed to a local road agency shall
be the product of the amount made available for snow removal
purposes and the local road agency's average share of snow payments
received during the years 2000 to 2010. Before November 30 of each
year, the department shall certify to the department of management
and budget its determination of the amount to which each eligible
local road agency is entitled from the distribution authorized by
this subsection. Before December 15 of each year, the department of
management and budget shall pay the county treasurer of each county
entitled to money for snow removal purposes, or to the treasurer of
each city and village entitled to money for snow removal purposes,
the amount to be returned to the eligible local road agency for
snow removal purposes under this subsection. The amount returned
for snow removal purposes under this subsection shall be for use on
the road or street system of the eligible local road agency.
(3) The balance of the amount to be returned to a local road
agency shall be expended by the local road agency for the
preservation, construction, acquisition, and extension of the road
system, including the acquisition of a necessary right-of-way for
the system, work incidental to the system, and a roadside park or
motorway appurtenant to the system, and shall be returned to the
local road agencies as follows:
(a) Twenty-eight percent of the amount in the same proportion
that the total vehicle miles traveled on roads functionally
classified as principal arterials in the local road agency's road
system bears to the total vehicle miles traveled on all roads
functionally classified as principal arterials in all local road
agencies' road systems.
(b) Twenty-four percent of the amount in the same proportion
that the total vehicle miles traveled on roads functionally
classified as minor arterials in the local road agency's road
system bears to the total vehicle miles traveled on all roads
functionally classified as minor arterials in all local road
agencies' road systems.
(c) Twenty percent of the amount in the same proportion that
the total vehicle miles traveled on roads functionally classified
as major collectors in the local road agency's road system bears to
the total vehicle miles traveled on all roads functionally
classified as major collectors in all local road agencies' road
systems.
(d) Twelve percent of the amount in the same proportion that
the sum total of centerline miles of roads functionally classified
as rural minor arterials, rural major collectors, and rural minor
collectors in the local road agency's road system bears to the sum
total of all centerline miles of roads functionally classified as
rural minor arterials, rural major collectors, and rural minor
collectors in all local road agencies' road systems.
(e) Eight percent of the amount in the same proportion that
the total centerline miles of roads functionally classified as
rural minor collectors in the local road agency's road system bears
to the total centerline miles on all roads functionally classified
as rural minor collectors in all local road agencies' road systems.
(f) Eight percent of the amount in the same proportion that
the total centerline miles on roads functionally classified as
local roads in the local road agency's road system bears to the
total centerline miles on all roads functionally classified as
local roads in all local road agencies' road systems.
(4) Money returned to a county, city, or village treasurer
from the commercial corridor fund shall be used in a manner
consistent with the asset management process defined in section 9a.
(5) Money distributed from the commercial corridor fund may be
expended for construction purposes on roads functionally classified
as local roads only to the extent that such money is matched by
money from other sources.
(6) Money distributed from the commercial corridor fund may
not be expended for construction purposes on any road closed to
commercial vehicles unless the road is functionally classified as a
local road.
Sec. 10s. (1) Beginning January 1, 2015, the system of
municipal streets in a municipality receiving less than $50,000.00
from the Michigan transportation fund in fiscal year 2012 shall be
transferred to the county road commission of the county in which
the municipality is located.
(2) Subsection (1) does not apply to cities or villages
described in section 10c(s)(iii) or (v).
(3) A transfer of a municipal street system under subsection
(1) shall not be included in the calculations required by section
10a.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5300(request no.
04245'11 *).
(b) Senate Bill No.____ or House Bill No. 5302(request no.
04255'11 *).