HOUSE BILL NO. 5861

June 17, 2020, Introduced by Rep. Sheppard and referred to the Committee on Government Operations.

"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,"

(MCL 247.651 to 247.675) by adding section 11i.

the people of the state of michigan enact:

Sec. 11i. (1) The department shall create and operate a local grade separation grant program for the separation of motor vehicle traffic and railroad traffic in this state. The department shall provide grants to cities, villages, and county road commissions in this state.

(2) An application for funds from the local grade separation grant program shall be made on a form approved by the department and shall contain the information required by the department. An application for funds under this section may be made at any time as determined by the department.

(3) The department shall establish a review process for considering funding applications under this section. No later than 120 days after receiving a funding application under this section, the department shall notify the applicant in writing whether the application is approved or rejected. If the department fails to notify an applicant in writing whether an application is approved or rejected within 120 days after receiving the funding application, the application shall be considered approved. Prior to releasing local grade separation grant funds, the department shall enter into a written agreement with the funding recipient.

(4) The written agreement between the department and the funding recipient shall provide for all of the following:

(a) Complete details of the grade separation project.

(b) A local, private, or federal match of not less than 20% of the cost of the grade separation project.

(5) For each year in which the department receives funding applications, the department shall report by December 1 to the standing committees of the senate and house of representatives with primary jurisdiction over issues pertaining to transportation and the senate and house of representatives appropriations committees on the utilization of funds from the local grade separation grant program. The report shall include, at a minimum, all of the following:

(a) The number of funding applications received under this section.

(b) The name of each city, village, or county road commission applying for funding, and whether each application was approved or denied.

(6) The local grade separation fund is created within the state treasury.

(7) The state treasurer may receive money or other assets from any source for deposit into the local grade separation fund. The state treasurer shall direct the investment of the local grade separation fund. The state treasurer shall credit to the local grade separation fund interest and earnings from local grade separation fund investments.

(8) Money in the local grade separation fund at the close of the fiscal year shall remain in the local grade separation fund and shall not lapse into the general fund.

(9) The state transportation department shall be the administrator of the local grade separation fund for auditing purposes.

(10) The state transportation department shall expend money from the local grade separation fund, upon appropriation, only to fund and operate the local grade separation grant program created in subsection (1).

(11) As used in this section, "grade separation" means an intersection of a railroad and roadway at different levels with the railroad either above or below the highway.