Bill Text: MI HB4782 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Transportation; funds; fixing Michigan roads fund; create. Amends title & secs. 10, 18b, 18c, 18d & 18e of 1951 PA 51 (MCL 247.660 et seq.); designates secs. 1 - 25 as art. I & adds art. II.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-07-02 - Bill Electronically Reproduced 07/02/2019 [HB4782 Detail]

Download: Michigan-2019-HB4782-Introduced.html

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HOUSE BILL No. 4782

 

 

June 26, 2019, Introduced by Rep. Sneller 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 10, 18b, 18c, 18d, and 18e (MCL

 

247.660, 247.668b, 247.668c, 247.668d, and 247.668e), the title as

 

amended by 2010 PA 135, section 10 as amended by 2018 PA 471,

 

sections 18b and 18e as amended by 2002 PA 498, section 18c as

 

amended by 2002 PA 451, and section 18d as amended by 2002 PA 557,

 

by designating sections 1 to 25 as article I, and by adding article

 

II.

 

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 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, fixing

 

Michigan roads fund and certain other funds; to provide for the

 

deposits and expenditures in the state trunk line fund, critical

 

bridge fund, comprehensive transportation fund, fixing Michigan

 

roads 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.

 

ARTICLE I

 

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

 

fund is established in the state treasury as a separate fund. The

 

state treasurer may receive money or other assets from any source

 

for deposit into the fund. The state treasurer shall direct the

 

investment of the fund. The state treasurer shall credit to the

 

fund interest and earnings from fund investments. Except as

 

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

 

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

 

in the Michigan transportation fund. Except as otherwise provided

 

in this section, the legislature shall appropriate money 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 479.42, and

 

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

 

257.801 to 257.810. Money 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 Michigan transportation

 

fund and from money in the transportation administration collection

 

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

 

300, MCL 257.810b. Appropriations from the Michigan transportation

 

fund 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

 

not exceed $20,000,000.00 per state fiscal year. Except as provided

 

in section 51d of the income tax act of 1967, 1967 PA 281, MCL

 

206.51d, all money in the Michigan transportation fund is

 

apportioned and appropriated in the following manner:

 

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

 

appropriated each fiscal year to the state trunk line fund for

 

subsequent deposit in the rail grade crossing account.

 

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

 

appropriated each fiscal year to the state trunk line fund for

 

subsequent deposit in the grade crossing surface account.

 

     (c) Not more than $3,000,000.00 each year to the local bridge

 

fund established in subsection (4) for the purpose of payment of

 

the principal, interest, and redemption premium on any notes or

 

bonds issued by the state transportation commission under former

 

section 11b or subsection (9).

 

     (d) Except as otherwise provided in this subdivision and

 

subject to section 11h, $2,000,000.00 each year of the revenue from

 

3 cents of the tax levied under section 8(1)(a) of the motor fuel

tax act, 2000 PA 403, MCL 207.1008, to the local agency wetland

 

mitigation board fund created in section 11h.

 

     (e) Except as otherwise provided in this subdivision,

 

$5,000,000.00 each year of the revenue from 3 cents of the tax

 

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

 

403, MCL 207.1008, to the movable bridge fund created in section

 

11g, with the remainder to the state trunk line fund, county road

 

commissions, and cities and villages in the percentages provided in

 

subdivision (l). The department shall annually adjust the amount

 

allocated under this subdivision by an amount equal to the annual

 

increase in the Detroit Consumer Price Index for the preceding

 

year.

 

     (f) One-half of the revenue from 1 cent of the tax levied

 

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

 

207.1008, to the state trunk line fund for the repair of state

 

bridges under section 11, and 1/2 of the revenue from 1 cent of the

 

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

 

403, MCL 207.1008, to the local bridge fund created in subsection

 

(4) for distribution only to cities, villages, and county road

 

commissions.

 

     (g) $50,000,000.00 to the state trunk line fund for debt

 

service costs on state of Michigan projects.

 

     (h) Ten percent to the comprehensive transportation fund for

 

the purposes described in section 10e.

 

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

 

subsection (4) for distribution only to the local bridge advisory

 

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

road commissions.

 

     (j) $36,775,000.00 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. In addition,

 

$3,500,000.00 is appropriated from the Michigan transportation fund

 

to the state trunk line fund for subsequent deposit in the

 

transportation economic development fund created in section 2 of

 

1987 PA 231, MCL 247.902, 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.

 

     (k) Not less than $33,000,000.00 as may be annually

 

appropriated each fiscal year to the local program fund created in

 

section 11e.

 

     (l) The balance of the Michigan transportation fund as

 

follows, after deduction of the amounts appropriated in

 

subdivisions (a) to (k), as well as funds collected under the

 

Michigan regulation and taxation of marihuana act, 2018 IL 1, MCL

 

333.27951 to 333.27967, and as directed to the Michigan

 

transportation fund under section 143 of the motor fuel tax act,

 

MCL 207.1143:

 

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

 

described in section 11.

 

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

 

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

 

     (2) The money appropriated under this section shall be used

 

for the purposes as provided in this act and any other applicable

act. Subject to the requirements of section 9b, the department

 

shall develop programs in conjunction with the Michigan Chamber of

 

Commerce and the Michigan Minority Supplier Development Council to

 

assist small businesses, including those located in enterprise

 

zones and those located in empowerment zones as determined under

 

federal law, as defined by law in becoming qualified to bid.

 

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

 

to this state from the federal government under 23 USC 157,

 

commonly known as minimum guarantee funds, shall be allocated to

 

the transportation economic development fund, if the allocation is

 

consistent with federal law. This money shall be distributed 16-

 

1/2% for development projects for rural counties as defined by law

 

and 15% for capacity improvement or advanced traffic management

 

systems in urban counties as defined by law. Federal money

 

allocated for distribution under this section is eligible for

 

obligation and use by all recipients as provided in the moving

 

ahead for progress in the 21st century act, Public Law 112-141.

 

     (4) A fund to be known as the local bridge fund is established

 

in the state treasury as a separate fund. The money appropriated to

 

the local bridge fund and the interest accruing to that fund shall

 

be expended for the local bridge program. The purpose of the fund

 

is to provide financial assistance to highway authorities for the

 

preservation, improvement, or reconstruction of existing bridges or

 

for the construction of bridges to replace existing bridges in

 

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

 

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

 

and shall consist of 6 voting members appointed by the state

transportation commission and 2 nonvoting members appointed by the

 

department. The board shall include 3 members from the County Road

 

Association of Michigan, 1 member who represents counties with

 

populations 65,000 or greater, 1 member who represents counties

 

with populations greater than 30,000 and less than 65,000, and 1

 

member who represents counties with populations of 30,000 or less.

 

Three members shall be appointed from the Michigan Municipal

 

League, 1 member who represents cities with a population 75,000 or

 

greater, 1 member who represents cities with a population less than

 

75,000, and 1 member who represents villages. Each organization

 

with voting rights shall submit a list of nominees in each

 

population category to the state transportation commission. The

 

state transportation commission shall make the appointments from

 

the lists submitted under this subsection. Voting members shall be

 

appointed for 2 years. The chairperson of the board shall be

 

selected from among the voting members of the board. In addition to

 

the 2 nonvoting members, the department shall provide qualified

 

administrative staff and qualified technical assistance to the

 

board.

 

     (5) No less than 5% and no more than 15% of the money received

 

in the local bridge fund may be used for critical repair of large

 

bridges and emergencies as determined by the local bridge advisory

 

board. Money remaining after the money allocated for critical large

 

bridge repair and emergencies is deducted shall be distributed by

 

the board to the regional bridge councils created under this

 

section. One regional council shall be formed for each department

 

of transportation region as those regions exist on October 1, 2004.

The regional councils shall consist of 2 members of the County Road

 

Association of Michigan from counties in the region, 2 members of

 

the Michigan Municipal League from cities and villages in the

 

region, and 1 member of the department in each region. The members

 

of the department are nonvoting members and shall provide qualified

 

administrative staff and qualified technical assistance to the

 

regional councils.

 

     (6) Money in the local bridge fund after deduction of the

 

amounts set aside for critical repair of large bridges and

 

emergency repairs shall be distributed among the regional bridge

 

councils according to all of the following ratios, which shall be

 

assigned a weight expressed as a percentage as determined by the

 

board, with each ratio receiving no greater than a 50% weight and

 

no less than a 25% weight:

 

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

 

bridges in the region and a denominator that is the total number of

 

local bridges in this state.

 

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

 

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

 

bridge deck area in this state.

 

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

 

structurally deficient local bridge deck area in the region and a

 

denominator that is the total amount of structurally deficient

 

local bridge deck area in this state.

 

     (7) The regional bridge councils shall allocate the money

 

received from the board for the preservation, improvement, and

 

reconstruction of existing bridges or for the construction of

bridges to replace existing bridges in whole or in part in each

 

region.

 

     (8) Each January, the department shall submit a report to the

 

chair and the minority vice-chair of the appropriations committees

 

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

 

committees on transportation of the senate and the house of

 

representatives, on all of the following activities for the

 

previous state fiscal year:

 

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

 

and large bridge repair.

 

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

 

projects were funded.

 

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

 

subsection (6).

 

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

 

     (e) A listing of the specific projects that were funded under

 

subsection (7).

 

     (9) The state transportation commission shall borrow money and

 

issue notes or bonds in an amount of not less than $30,000,000.00

 

to supplement the funding provided for the local bridge program

 

under subsection (5). The bonds or notes issued under this

 

subsection may be issued by the commission for any purpose for

 

which other local bridge money may be used under this section. The

 

bonds or notes authorized by this subsection shall be issued by

 

resolution of the state transportation commission consistent with

 

the requirements of section 18b.

 

     (10) The department shall promulgate rules under the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328, governing the administration of the local bridge program.

 

The rules shall set forth the eligibility criteria for financial

 

assistance under the program and other matters related to the

 

program that the department considers necessary and desirable. The

 

department shall take into consideration the availability of

 

federal aid and other financial resources of the highway authority

 

responsible for the bridge, the importance of the bridge to the

 

highway, road, or street network, and the condition of the existing

 

bridge.

 

     (11) The revenue appropriated to the local bridge fund under

 

subsection (1)(e) (1)(i) shall be distributed only to the local

 

bridge advisory board, the regional bridge councils, cities,

 

villages, and county road commissions.

 

     (12) The regional bridge councils shall determine what bridge

 

projects are selected for funding from the local bridge fund

 

created in subsection (4) and shall make a list of selected

 

projects available to interested parties in the region. A

 

determination that a bridge project is selected for funding in a

 

given fiscal year is not approval to disburse the money.

 

     (13) A county road commission, city, or village may implement

 

a bridge project if the bridge project has been selected for

 

funding and is included in the appropriate regional bridge

 

council's current multiyear bridge plan for the local bridge

 

program but the regional bridge council has not allocated money to

 

the bridge project for the fiscal year that the bridge project is

 

on the current multiyear bridge plan. A county road commission,

city, or village may borrow money to implement a project that has

 

been selected for funding and is included in the appropriate

 

regional bridge council's current multiyear bridge plan but has not

 

been allocated money by the regional bridge council. Based on

 

available local bridge money, when a bridge project that was

 

implemented with borrowed money is allocated funding in a

 

subsequent fiscal year, the funding shall only be used to repay the

 

amount approved by the multiyear bridge plan when the money was

 

borrowed. To be eligible for repayment of the amount borrowed, a

 

bridge project that has been implemented with borrowed money shall

 

be administered through the department's local bridge program.

 

     Sec. 18b. (1) The state transportation commission may borrow

 

money and issue notes or bonds for the following purposes:

 

     (a) To pay all or any portion of or to make loans, grants, or

 

contract payments to pay all or any portion of any capital costs

 

for the purposes described in section 9 of article IX of the state

 

constitution of 1963.

 

     (b) To pay the principal or the principal and interest on

 

notes and, if the state transportation commission considers

 

refunding to be expedient, to refund bonds payable from money in

 

the state trunk line fund or the comprehensive transportation fund

 

or received or to be received from the motor vehicle highway fund

 

or the Michigan transportation fund regardless of when the refunded

 

bonds were issued, by the issuance of new bonds, whether or not the

 

bonds to be refunded have matured or are subject to prior

 

redemption or are to be paid, redeemed, or surrendered at the time

 

of issuance of the refunding bonds; and to issue new bonds partly

to refund bonds or pay notes then outstanding and partly for any

 

other transportation purpose authorized by this act.

 

     (c) To pay all costs relating to the issuance of the bonds or

 

notes described in this section, including, but not limited to,

 

legal, engineering, accounting, and consulting services, interest

 

on bonds or notes for such period as determined by the state

 

transportation commission in the resolution authorizing the bonds

 

or notes and a reserve for payment of principal, interest, and

 

redemption premiums on the bonds or notes in an amount determined

 

by the state transportation commission in the resolution

 

authorizing the bonds or notes.

 

     (2) The refunding bonds described in subsection (1)(b) shall

 

be sold and the proceeds and the earnings or profits from the

 

investment of those proceeds applied in whole or in part to the

 

purchase, redemption, or payment of the principal or the principal

 

and interest of the bonds to be refunded and the refunding bonds

 

issued by the state transportation commission under subsection

 

(1)(b) and the costs described in subsection (1)(c). Refunding

 

notes or bonds shall be considered to be issued for the same

 

purpose or purposes for which the notes or bonds to be refunded

 

were issued.

 

     (3) The notes or bonds authorized by this section shall be

 

issued only after authorization by resolution of the state

 

transportation commission, which resolution shall contain the

 

following:

 

     (a) An irrevocable pledge providing for the payment of the

 

principal and interest on the notes or bonds from money which is

restricted as to use by section 9 of article IX of the state

 

constitution of 1963 and which is deposited or to be deposited in

 

the comprehensive transportation fund, or in the fixing Michigan

 

roads fund, in the case of bonds or notes issued for comprehensive

 

transportation purposes as defined by law, or in the state trunk

 

line fund, or in the fixing Michigan roads fund, in the case of

 

bonds or notes issued for transportation purposes described in the

 

second paragraph of section 9 of article IX of the state

 

constitution of 1963, or in the case of notes or bonds, if the

 

resolution authorizing the notes or bonds provides, from money

 

received or to be received by the state transportation department

 

from the proceeds of bonds or renewal notes to be issued after the

 

date of the resolution or from money received or to be received

 

from the proceeds of the grants described in subsection (9). If the

 

resolution authorizing the bonds or notes so provides, a portion of

 

the principal or interest on the bonds or notes may be secured by

 

an irrevocable pledge of money deposited in the comprehensive

 

transportation fund or the state trunk line fund, and the balance

 

of the principal and interest secured by an irrevocable pledge of

 

the proceeds of bonds or renewal notes or money received or to be

 

received from the proceeds of the grants described in subsection

 

(9).

 

     (b) A brief statement describing the projects for which the

 

notes or bonds are to be issued and in the case of notes or bonds

 

to pay notes or refund bonds, a description of the notes or bonds

 

to be paid or refunded. For purposes of this section and section

 

18k, in connection with bonds issued to fund the loan program

established under section 11(6) to (11), 11, the loan program shall

 

constitute the project, and it shall not be necessary to specify

 

the particular item or costs of a particular item to be financed

 

from any particular loan made under the loan program.

 

     (c) The estimated cost of the projects or refunding or

 

refinancing.

 

     (d) The detail of the notes or bonds including the date of

 

issue, maturity date or dates of the bonds or notes, the maximum

 

interest rate, the dates of payment of interest, the paying agents,

 

the transfer agent or agents, the provisions for registration, the

 

redemption provisions, and the manner of execution or, as provided

 

in subsection (11)(d), the limitations within which such detail may

 

be determined by the person designated by the commission.

 

     (4) If after the issuance of notes or bonds, the state

 

transportation commission determines that a project for which the

 

notes or bonds are to be issued should be changed, the state

 

transportation commission, by resolution, adopted after the 30

 

days' notice of intention to adopt the resolution has been given to

 

the appropriations committees of the senate and the house of

 

representatives, shall amend the resolution authorizing the bonds

 

or notes to change the description of the project or projects or to

 

substitute a different project or projects for the project for

 

which the notes or bonds were issued and shall make other revisions

 

in the resolution authorizing the notes or bonds with respect to

 

cost as may be necessary to permit the change in or substitution of

 

a project or projects.

 

     (5) Before October 1, 1979, the total amount of bonds and

notes issued pursuant to this section for comprehensive

 

transportation purposes as defined by law shall not exceed an

 

amount as will be serviced as to maximum principal and interest

 

requirements by a sum equal to the amount deposited to the credit

 

of the general transportation fund for the fiscal year ending

 

September 30, 1977. After September 30, 1979, the total amount of

 

bonds and notes issued pursuant to this section for comprehensive

 

transportation purposes as defined by law shall not exceed an

 

amount as will be serviced, out of state funds only, as to maximum

 

annual principal and interest requirements by an amount equal to

 

50% of the total amount of money from taxes, the use of which money

 

is restricted by section 9 of article IX of the state constitution

 

of 1963, and which money is deposited in the state treasury to the

 

credit of the comprehensive transportation fund during the state

 

fiscal year immediately preceding the issuance of the bonds or

 

notes.

 

     (6) The total amount of bonds and notes issued pursuant to

 

this section for transportation purposes described in the second

 

paragraph of section 9 of article IX of the state constitution of

 

1963 shall not exceed an any of the following:

 

     (a) An amount as will be serviced as to the maximum principal

 

and interest requirements by a sum equal to 50% of the total of the

 

amount of money received from taxes, the use of which is restricted

 

by section 9 of article IX of the state constitution of 1963 and

 

which is deposited in the state treasury to the credit of the state

 

trunk line fund during the state fiscal year immediately preceding

 

the issuance of the bonds or notes.

     (b) An amount as will be serviced as to the maximum principal

 

and interest requirements by a sum equal to 50% of the total amount

 

of the money received from taxes, the use of which is restricted by

 

section 9 of article IX of the state constitution of 1963 and which

 

is deposited in the state treasury to the credit of the fixing

 

Michigan roads fund during the state fiscal year immediately

 

preceding the issuance of the bonds or notes. For purposes of

 

satisfying this calculation, in 2019, the amount of money received

 

from taxes imposed at the rate then in effect shall be projected

 

based on the average usage rates for the immediately preceding 2

 

fiscal years.

 

     (c) If amounts to be received by the state trunk line fund and

 

the fixing Michigan roads fund are cross-collateralized in

 

accordance with section 18b(13), the restriction contained in this

 

subsection shall be measured against the total amount of money

 

received from taxes, the use of which is restricted by section 9 of

 

article IX of the state constitution of 1963 and which is deposited

 

in the state treasury to the credit of both the state trunk line

 

fund and the fixing Michigan roads fund during the state fiscal

 

year immediately preceding the issuance of the bonds and notes.

 

     (7) The principal or principal and interest or the portion of

 

principal or interest of bonds or notes which are issued in

 

anticipation of the issuance of bonds or renewal notes or of

 

federal grants as provided in subsection (9) and which do not

 

pledge for their payment money in the state trunk line fund or the

 

comprehensive transportation fund or money received or to be

 

received by the state transportation department from the Michigan

transportation fund or the motor vehicle highway fund shall not be

 

considered to be principal and interest requirements subject to the

 

limitation set forth in subsections (5) and (6). The principal of

 

and interest on notes or bonds refunded or for the refunding of

 

which refunding bonds have been sold, whether the bonds to be

 

refunded are to be retired at the time of delivery of the refunding

 

bonds or not, shall not be considered to be principal and interest

 

requirements subject to the limitation set forth in subsections (5)

 

and (6).

 

     (8) In computing the maximum annual principal and interest

 

requirements under subsection (6), the total outstanding maximum

 

annual contributions required to be made by the state highway

 

commission and the state transportation commission pursuant to

 

contracts entered into under the authorization of section 18d,

 

which contributions are pledged to the payment of bonds issued

 

under section 18d, shall be included in the amount.

 

     (9) The state transportation commission may borrow money and

 

issue notes or bonds in anticipation of the receipt of grants from

 

the United States of America or any agency or instrumentality

 

thereof and may pledge for the payment of the principal, interest,

 

and redemption premiums on such notes or bonds 1 or more of the

 

following:

 

     (a) The proceeds of any grant and any investment earnings or

 

gain on the grant.

 

     (b) If deemed advisable by the state transportation

 

commission, money which is restricted as to use by section 9 of

 

article IX of the state constitution of 1963, and which is

deposited or to be deposited in the comprehensive transportation

 

fund, in the case of bonds or notes issued for comprehensive

 

transportation purposes as defined by law, or in the state trunk

 

line fund, in the case of bonds or notes issued for transportation

 

purposes described in the second paragraph of section 9 of article

 

IX of the state constitution of 1963.

 

     (c) If deemed advisable by the state transportation

 

commission, money received or to be received by the state from the

 

sale of the bonds or notes described in this section to be issued

 

after the issuance of the notes or bonds described in this

 

subsection and any investment earnings or gain thereon.

 

     (10) Bonds or notes may be issued under this section as

 

separate issues or series with different dates of issuance, but the

 

aggregate of the bonds or notes shall be subject to the limitations

 

set forth in this section.

 

     (11) The state transportation commission in determining to

 

issue bonds or notes may do 1 or more of the following:

 

     (a) Authorize and enter into insurance contracts, agreements

 

for lines of credit, letters of credit, commitments to purchase

 

obligations, remarketing agreements, reimbursement agreements, and

 

any other transactions to provide security to assure timely payment

 

of any bonds or notes.

 

     (b) Authorize payment from the proceeds of the bonds or notes

 

or other funds available, of the cost of issuance, including, but

 

not limited to, fees for placement, fees or charges for insurance,

 

letters of credit, lines of credit, remarketing agreements,

 

reimbursement agreements, or purchase or sales agreements or

commitments, or other agreements to provide security to assure

 

timely payment of bonds or notes.

 

     (c) Authorize principal and interest to be payable from 1 or

 

more of the following:

 

     (i) Money described in subsection (3)(a).

 

     (ii) Proceeds of bonds or notes.

 

     (iii) Earning on proceeds of bonds or notes or other funds

 

held for payment of bonds or notes.

 

     (iv) Proceeds of any other security provided to assure timely

 

payment of the bonds or notes.

 

     (v) Proceeds of federal grants and other money described in

 

subsection (9).

 

     (vi) Any combination of the sources described in subparagraphs

 

(i) to (v).

 

     (d) Authorize or provide for a person designated by the state

 

transportation commission, but only within limitations which shall

 

be contained in the authorization resolution of the state

 

transportation commission, to do 1 or more of the following:

 

     (i) Sell and deliver and receive payment for bonds or notes.

 

     (ii) Refund bonds or notes by the delivery of new bonds or

 

notes, whether or not the bonds or notes to be refunded have

 

matured or are subject to redemption prior to maturity on the date

 

of delivery of the refunding bonds or notes.

 

     (iii) Deliver bonds or notes partly to refund bonds or notes

 

and partly for any other authorized purposes.

 

     (iv) Buy, hold without cancellation, or sell bonds or notes so

 

issued.

     (v) Approve interest rates or methods for fixing interest

 

rates, prices, discounts, maturities, principal amounts,

 

denominations, dates of issuance, interest payment dates, optional

 

or mandatory redemption or tender rights and obligations to be

 

exercised by the state transportation commission or the holder, the

 

place of delivery and payment, and other matters and procedures

 

necessary to complete the transactions authorized.

 

     (e) In connection with outstanding bonds, notes, or other

 

obligations issued under this act, or in connection with the

 

issuance or proposed issuance of bonds, notes, or other

 

indebtedness, the state transportation commission may authorize by

 

resolution the execution and delivery of agreements providing for

 

interest rate exchanges or swaps, hedges, or similar agreements.

 

The obligations of this state under the agreements, including

 

termination payments, may be made payable from and secured by a

 

pledge of the same sources of funds as the bonds, notes, or other

 

obligations in connection with which the agreements are entered

 

into, or from any other sources of funds available as a payment

 

source of bonds, notes, or other obligations issued under this act.

 

In calculating debt service on bonds, notes, and other obligations,

 

the payments and receipts under the agreements authorized by this

 

subsection, without regard to termination payments, and the payment

 

obligations under the bonds, notes, or other obligations in

 

connection with which the agreements are entered into, shall be

 

aggregated and treated as a single obligation.

 

     (f) Bonds and notes issued under this act are not subject to

 

the revised municipal finance act, 2001 PA 34, MCL 141.2101 to

141.2821.

 

     (g) The issuance of bonds and notes under this section is

 

subject to the agency financing reporting act.

 

     If additionally secured as provided in this subsection, the

 

bonds or notes, notwithstanding other provisions of this act, may

 

be made payable or subject to purchase on demand or prior to

 

maturity at the option of the holder at the time and in the manner

 

as determined by the state transportation commission or the

 

designated person as provided in the resolution authorizing the

 

bonds or notes. Any bonds or notes authorized by this section may

 

bear no interest or interest at a rate or rates which may be

 

variable but which shall be subject to the limitations provided in

 

section 18e as provided in the resolution authorizing the

 

obligations. If bonds or notes are subject to payment or purchase

 

on demand or prior to maturity at the option of the holder, and the

 

obligation of the state to make payment or effect purchases on

 

demand or prior to maturity, at the option of the holder is limited

 

to the proceeds of 1 or more of the additional security devices

 

described in this subsection and is not payable from

 

constitutionally restricted funds deposited in the comprehensive

 

transportation fund, or the state trunk line fund, or the fixing

 

Michigan roads fund, for purposes of computing maximum annual

 

principal and interest requirements under subsections (5) and (6),

 

the principal and interest on the bonds or notes subject to payment

 

or purchase on demand or prior redemption at the option of the

 

holder shall be disregarded and the maximum annual principal and

 

interest requirements which would arise with respect to the

repayment of the proceeds of the additional security device shall

 

be substituted therefor.

 

     (12) The irrevocable pledge authorized by subsection (3)(a) of

 

amounts deposited in the comprehensive transportation fund, the

 

state trunk line fund, and the fixing Michigan roads fund, are

 

separate and distinct pledges and constitute separate and distinct

 

security for bonds and notes issued for comprehensive

 

transportation purposes or for transportation purposes.

 

     (13) The commission is authorized to cross-collateralize the

 

pledge of amounts received by the state trunk line fund and the

 

fixing Michigan roads fund if the director of the department

 

determines it would be more economical or efficient to do so. The

 

commission is further authorized to issue senior, parity, and

 

subordinate bonds or notes in order to effectuate the lowest cost

 

interest rate on bonds or notes it issues for transportation

 

purposes.

 

     Sec. 18c. (1) A county may borrow money and issue bonds to pay

 

all or any portion of the cost of the construction or

 

reconstruction of highways, including limited access highways,

 

which by law a county road commission is authorized to construct or

 

reconstruct, or participate with any other county road commission,

 

city, or village in the construction or reconstruction of,

 

including the construction or the enlargement, reconstruction, or

 

relocation of existing highways and the acquisition of necessary

 

rights-of-way for those highways, and all work incidental to the

 

construction or reconstruction, which bonds shall be issued only

 

upon the written recommendation or approval of the county road

commission, and the adoption of a resolution by a majority vote of

 

the county board of commissioners of the county. The resolution

 

shall briefly describe the contemplated highway construction

 

project, the estimated cost of the project, and the amount, maximum

 

rate of interest, and maturity dates of the bonds to be issued and

 

the form of the bonds. The resolution shall contain an irrevocable

 

appropriation providing for the payment of the principal and

 

interest of the bonds from the money received or to be received by

 

the county road commission from the Michigan transportation fund or

 

the fixing Michigan roads fund, except to the extent the money has

 

been pledged by contract in accordance with 1941 PA 205, MCL 252.51

 

to 252.64, before July 1, 1957, for the construction or financing

 

of limited access highways, and except to the extent the moneys

 

money have been pledged before July 1, 1957, for the payment of

 

notes issued under 1943 PA 143, MCL 141.251 to 141.254. A

 

contractual pledge made before July 1, 1957, in accordance with the

 

provisions of 1941 PA 205, MCL 252.51 to 252.64, and a pledge made

 

before July 1, 1957, for the payment of promissory notes under 1943

 

PA 143, MCL 141.251 to 141.254, shall have and retain its priority

 

of lien or charge against the money distributed by law to the

 

county road commission from the Michigan transportation fund or the

 

fixing Michigan roads fund, as contemplated by those acts, and as

 

provided in the contract or resolution authorizing the issuance of

 

bonds or notes under those acts. A pledge made after June 30, 1957,

 

by a county road commission under 1941 PA 205, MCL 252.51 to

 

252.64, or 1943 PA 143, MCL 141.251 to 141.254, shall have equal

 

standing and priority with a pledge made after June 30, 1957, by

the county road commission under this act. The total aggregate

 

amount of bonds that may be issued by a county under this section

 

shall not exceed the amount that will be serviced as to their

 

maximum annual principal and interest requirements by an amount

 

equal to 20% of the moneys money received by the county road

 

commission of the county from the Michigan transportation fund or

 

the fixing Michigan roads fund during the fiscal year immediately

 

preceding the issuance of the bonds. Bonds may be issued under this

 

section as separate issues or series with different dates of

 

issuance but the aggregate of the bonds shall be subject to the

 

limitations set forth in this act. As additional security for the

 

payment of the bonds, a county, upon adoption of a resolution by a

 

majority of the members of its county board of commissioners, may

 

agree on behalf of the county that if the funds pledged for the

 

payment of the bonds are at any time insufficient to pay the

 

principal and interest on the bonds as the same become due, the

 

county treasurer shall be obligated to advance sufficient money

 

from the general fund of the county to make up the deficiency, and

 

reimbursement shall be made from the first subsequent revenues

 

received by the county road commission from the Michigan

 

transportation fund or the fixing Michigan roads fund not pledged

 

or required to be set aside and used for the payment of the

 

principal and interest on bonds, notes, or other evidences of

 

indebtedness.

 

     (2) The total annual amount that may be pledged by a county

 

road commission for the payment of principal and interest on bonds

 

issued pursuant to this section, or the payment of contributions as

required by a contract entered into in accordance with section 18d,

 

which contributions are pledged for the payment of bonds, together

 

with total maximum debt service requirements for payment of notes

 

issued under 1943 PA 143, MCL 141.251 to 141.254, shall not exceed

 

50% of the total amount received by the county road commission from

 

the Michigan transportation fund or the fixing Michigan roads fund

 

during the last completed fiscal year ending on June 30 before the

 

issuance of a bond or note or the execution of a contract.

 

     (3) Bonds issued under this section are subject to the revised

 

municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.

 

     Sec. 18d. (1) The state transportation commission, county road

 

commission, and a city or village may enter into a contract

 

providing for the construction or reconstruction of highways,

 

including limited access highways, under the jurisdiction and

 

control of 1 of the contracting parties to the extent that the

 

contracting parties are otherwise authorized by law to expend

 

moneys on the highways, roads, or streets, which contract shall

 

provide for allocation of the share of the cost of the construction

 

or reconstruction to be borne by the department or a county road

 

commission, city, or village in annual installments for a period

 

not to exceed 30 years. The contract shall designate the department

 

or a county road commission, city, or village to carry on, in whole

 

or in part, the engineering, construction, or reconstruction work

 

required by the contract, which may include the construction or

 

enlargement, reconstruction, or relocation of existing highways and

 

work incidental to the engineering, construction, or reconstruction

 

work. The contract shall designate the department or a county road

commission, city, or village to undertake the acquisition of rights

 

of way required for the highways, which rights of way may be

 

acquired by purchase or condemnation by the department or a county

 

road commission, city, or village in its own name for the purposes

 

of the construction or reconstruction. The department or a county

 

road commission, city, or village may make a contribution to the

 

cost of its highway construction and reconstruction projects as are

 

provided for in contracts authorized in this section. A

 

governmental unit may make irrevocable pledges of its Michigan

 

transportation fund or the fixing Michigan roads fund receipts to

 

meet its annual obligations pursuant to the contracts. A

 

governmental unit that is a party to a contract may make an

 

additional irrevocable pledge of a contribution or funds received,

 

or to be received, by the department or a county road commission,

 

city, or village from the federal government or 1 of its agencies

 

or from any other source for or in aid of the highway construction

 

or reconstruction projects provided for in the contracts. A

 

governmental unit that is a party to the contracts may borrow money

 

and issue bonds in accordance with this act for the purpose of

 

providing funds for the immediate construction or reconstruction of

 

the highway projects contemplated by the contracts. The bonds shall

 

be secured by an irrevocable pledge of the annual contributions

 

required to be made by the department or a county road commission,

 

city, or village that is a party to the contracts. Before the

 

issuance of the bonds by a governmental unit, the issuance of the

 

bonds shall be approved by a resolution of the state administrative

 

board and by a resolution of the county road commission of each

county and the governing body of each city or village that is a

 

party to the contracts. The annual contribution required by the

 

contracts shall be paid to the governmental unit issuing the bonds.

 

A governmental unit that is a party to the contracts, at any time,

 

may pay all or part of the unpaid annual contributions undertaken

 

by it in a contract, and may raise money for that payment by the

 

issuance of bonds in accordance with and subject to this act. A

 

contract executed under this section may authorize the governmental

 

unit issuing the bonds pursuant to the contract to receive bids for

 

the bonds, accept the best bid, and issue and deliver the bonds for

 

and on behalf of all the parties to the contract.

 

     (2) The aggregate amount of annual contributions from the

 

Michigan transportation fund or the fixing Michigan roads fund that

 

may be made by a county, city, or village under this section and

 

pledged for the payment of principal and interest on bonds issued

 

pursuant to a contract, shall not exceed 40% of the total amount

 

received by it from the Michigan transportation fund or the fixing

 

Michigan roads fund during the last completed fiscal year ending on

 

the June 30 before the execution of a contract. The amount of an

 

annual contribution made by the state transportation department and

 

pledged for the payment of bonds pursuant to this section shall be

 

included in computing the bonding limit set forth in section 18b.

 

The total aggregate amount that may be pledged by a city or village

 

for the payment of principal and interest on bonds issued pursuant

 

to a contract entered into in accordance with this section and 1952

 

PA 175, MCL 247.701 to 247.707, shall not exceed 50% of the total

 

amount received by the city or village from the Michigan

transportation fund or the fixing Michigan roads fund and the

 

highway construction fund during the last completed fiscal year

 

ending on June 30 before the issuance of the bonds.

 

     (3) Bonds issued and contracts entered into under this section

 

are not subject to the revised municipal finance act, 2001 PA 34,

 

MCL 141.2101 to 141.2821.

 

     (4) The issuance of bonds under this section is subject to the

 

agency financing reporting act.

 

     Sec. 18e. Except for bonds issued under section 18c, bonds

 

issued by a governmental unit under this act shall be serial bonds

 

with periodic maturities, or term bonds, with mandatory redemption

 

requirements, or both serial and term bonds, the aggregate of which

 

shall not exceed 30 years, the first of which shall fall due not

 

more than 5 years from the date of issuance. Maturities shall be as

 

established by the resolution or ordinance authorizing the bonds or

 

notes, without regard to the useful lives of the projects financed

 

from the proceeds of the bonds or notes. The bonds shall bear

 

interest, taking into account any discount or premium on the sale

 

of the bonds, at a rate not exceeding the maximum rate permitted by

 

the revised municipal finance act, 2001 PA 34, MCL 141.2101 to

 

141.2821, may be made redeemable before maturity on those terms and

 

conditions, and with the premium as shall be provided by the

 

proceedings authorizing their issuance. Outstanding and authorized

 

bonds issued pursuant to this act may be treated as a single issue

 

for the purpose of fixing maturities. If pursuant to 1952 PA 175,

 

MCL 247.701 to 247.707, or in 1943 PA 143, MCL 141.251 to 141.254,

 

the maximum annual principal and interest requirements on bonds

issued by governmental units are required to be measured by

 

reference to amounts received from the motor vehicle highway fund,

 

the requirements shall be measured by the receipts from the motor

 

vehicle highway fund, the Michigan transportation fund, or both

 

funds, the fixing Michigan roads fund, or all 3 of these funds and

 

if pursuant to this act the maximum annual principal and interest

 

requirements on bonds or notes issued by governmental units are

 

required to be measured by reference to amounts received from the

 

Michigan transportation fund or the fixing Michigan roads fund, the

 

requirements shall be measured by the receipts from the motor

 

vehicle highway fund, the Michigan transportation fund, or both the

 

fixing Michigan roads fund, or all 3 of these funds. The state

 

transportation commission shall certify, which certification shall,

 

for purposes of the validity of bonds, notes, and other

 

obligations, be conclusive as to the matters stated in the

 

certification, to the state treasury on or before the issuance of

 

any bonds, notes, or other obligations payable from and secured by

 

a lien on the state trunk line fund, issued after July 1, 1983,

 

pursuant to section 18b or 18d for purposes other than the

 

preservation of highways, roads, streets, and bridges and for

 

purposes other than the purposes specified in section 11(2)(b),

 

(c), (d), (g), (h), and (i) that its average annual debt service

 

requirements payable from and secured by a lien on the state trunk

 

line fund for all bonds, notes, and other obligations, or portions

 

of bonds, notes, and other obligations 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

section 11(2)(b), (c), (d), (g), (h), and (i), including the bonds,

 

notes, or other obligations to be issued does not exceed 10% of the

 

state revenue appropriated to the state trunk line fund, less the

 

amounts described in section 11(2)(a) to (i) during the last

 

completed state fiscal year. The state transportation commission

 

shall certify, which certification shall, for purposes of the

 

validity of bonds, notes, or other certification, to the state

 

treasury on or before the issuance of any bonds, notes, or other

 

obligations issued after December 31, 2001, pursuant to section

 

18b(9) in anticipation of the receipt of grants from the United

 

States or any agency or instrumentality of the United States for

 

distributions to the credit of the state trunk line fund, and not

 

payable from taxes deposited in the state trunk line fund, for

 

purposes other than the preservation of highways, roads, streets,

 

and bridges and for purposes other than the purposes specified in

 

section 11(2)(b), (c), (f), and (i), that its average annual debt

 

service requirements for all bonds, notes, and other obligations,

 

or portions of bonds, notes, or other obligations issued after

 

December 31, 2001, pursuant to section 18b(9) and not payable from

 

taxes deposited in the state trunk line fund, for purposes other

 

than the preservation of highways, roads, streets, and bridges and

 

other than the purposes specified in section 11(2)(b), (c), (f),

 

and (i), including the bonds, notes, or other obligations to be

 

issued, do not exceed 10% of the federal revenue distributed to the

 

credit of the state trunk line fund during the last completed state

 

fiscal year. If the purpose for which the bonds, notes, or other

 

obligations is issued is changed after the issuance of the bonds,

notes, or other obligations, the change shall be made in a manner

 

to maintain compliance with the certification required by the

 

preceding sentence, as of the date the certificate was originally

 

issued, but no change shall invalidate or otherwise affect the

 

bonds, notes, or other obligations with respect to which the

 

certificate was issued, or the obligation to pay debt service on

 

the bonds, notes, or other obligations. As used in this section,

 

"preservation" means preservation as defined in section 10c.

 

                              ARTICLE II

 

     Sec. 26. As used in this article:

 

     (a) "Fixing Michigan roads fund" means the fixing Michigan

 

roads fund created in section 27.

 

     (b) "Fixing Michigan roads review committee" or "committee"

 

means the fixing Michigan roads review committee created in section

 

28.

 

     (c) "Lane-miles" means the number of survey centerline and

 

ramp miles multiplied by the number of through lanes on each

 

highway segment not including turn, parking, or other lanes not

 

continuously open to traffic by at least 1 class of road user.

 

     (d) "National functional classification", or "NFC", means the

 

system of road classification administered by the United States

 

government established at 23 CFR 470.105(b), or its successor

 

system. In the event of abandonment of the system of national

 

functional classification by the United States government,

 

classification for the purposes of this act shall be in accordance

 

with the publication of the United States Department of

 

Transportation, Federal Highway Administration, "Highway Functional

Classification Concepts, Criteria and Procedures, 2013 edition".

 

     (e) "Road agency" means the state transportation department, a

 

city or village, or a county road commission or, in a county not

 

having a road commission, the division of county general government

 

having authority over county roads.

 

     Sec. 27. (1) The fixing Michigan roads fund is established in

 

the state treasury as a separate fund. The state treasurer may

 

receive money or other assets from any source for deposit into the

 

fund. The state treasurer shall direct the investment of the fund.

 

The state treasurer shall credit to the fund interest and earnings

 

from fund investments. All money in the fixing Michigan roads fund

 

is apportioned and appropriated in the following manner:

 

     (a) Forty-seven percent to the road agencies of this state in

 

the proportion that the lane-miles as determined by federal

 

functional classification of interstate and freeway highways under

 

each agency's jurisdiction bears to the total of all interstate and

 

freeway lane-miles in this state.

 

     (b) Thirty percent to the road agencies of this state in the

 

proportion that the lane-miles as determined by federal functional

 

classification of principal arterials under each agency's

 

jurisdiction bears to the total of all principal arterial lane

 

miles in this state.

 

     (c) Seven percent to the road agencies of this state in the

 

proportion that the lane-miles as determined by federal functional

 

classification of minor arterial highways under each agency's

 

jurisdiction bears to the total of all minor arterial lane-miles in

 

this state.

     (d) Seven percent to the road agencies of this state in the

 

proportion that the lane-miles as determined by federal functional

 

classification of major collector highways under each agency's

 

jurisdiction bears to the total of all major collector lane-miles

 

in this state.

 

     (e) Four percent for bridges under the jurisdiction of local

 

road agencies and usable by local road agencies in consultation

 

with the department for the preservation, improvement,

 

reconstruction, or replacement of bridges under local control in

 

multiple jurisdictions and in 1 or more contracts administered by

 

the department, or for the repayment of bonds or notes issued by

 

the commission to finance projects for any purpose for which bridge

 

money is usable under this section, and for the costs of

 

administering those contracts. Money not used for contracts

 

covering bridges in multiple jurisdictions shall be distributed to

 

local road agencies in proportion to the deck area of bridges under

 

each agency's jurisdiction.

 

     (f) Three percent for programs administered by the department

 

that promote innovation, efficiency, or energy conservation in

 

public transportation by public and private carriers, support

 

improving the rail network of this state, and promote efficient

 

freight and passenger movement on rail lines, marine ports, and

 

associated facilities.

 

     (g) Two percent for economic development road projects on

 

county primary roads and city major streets in rural counties, to

 

be distributed to the regional rural task forces created in section

 

12a of 1987 PA 231, MCL 247.912a, in the manner provided in section

11(3)(c) of 1987 PA 231, MCL 247.911.

 

     (2) The bonding provisions set forth in sections 18b to 18l

 

apply to distributions from the fixing Michigan roads fund.

 

     (3) At the close of the fiscal year, any unencumbered and

 

unexpended balance in the fixing Michigan roads fund shall remain

 

in the fixing Michigan roads fund, shall carry forward and is

 

appropriated for the purposes and according to the percentages

 

described in this article.

 

     Sec. 28. (1) The fixing Michigan roads review committee is

 

created within the state transportation department.

 

     (2) The fixing Michigan roads review committee shall consist

 

of the director of the department and 8 members appointed by the

 

governor having expertise in asset management, engineering, and tax

 

administration. The committee shall solicit comment and advice from

 

road users and other persons dependent on the adequacy of the

 

transportation system.

 

     (3) The committee shall study the following subjects:

 

     (a) Progress toward system-condition goals.

 

     (b) Adequacy of user fees.

 

     (c) Available federal aid.

 

     (d) Long-range transportation plans.

 

     (e) Alternative fee bases and rates.

 

     (f) Means of collection including, but not limited to, fuel

 

taxes, mileage-based user fees, systems of vehicle registration, ad

 

valorem and other vehicle taxes, and truck axle loading.

 

     (g) Alternative models of road stewardship.

 

     (h) Alternative models of public-transit service provision.

     (i) Other issues at the commission's discretion.

 

     (4) The committee shall make recommendations to the governor

 

to address such items as, but not limited to, the following:

 

     (a) Revisions to this act, the Michigan vehicle code, 1949 PA

 

300, MCL 257.1 to 257.923, 1909 PA 283, MCL 220.1 to 239.6, and any

 

other laws, with the goal of enacting a simple, efficient, and

 

transparent transportation funding mechanism which ensures that

 

taxes and fees on transportation activities fund only

 

transportation infrastructure and services.

 

     (b) Reductions or increases in road-user fees, including

 

alternative methods of road-user fee collection.

 

     (5) Members of the fixing Michigan roads review committee

 

shall be appointed no later than October 1, 2024. Members of the

 

commission shall serve for terms of 2 years or until a successor is

 

appointed, whichever is later.

 

     (6) The fixing Michigan roads review committee shall present

 

its recommendations for legislative action no later than September

 

30, 2026, after which it is abolished.

 

     (7) If a vacancy occurs on the committee, the person that

 

appointed the vacating member shall make an appointment for the

 

unexpired term in the same manner as the original appointment.

 

     (8) A member of the committee may be removed for incompetence,

 

dereliction of duty, malfeasance, misfeasance, or nonfeasance in

 

office, or any other good cause.

 

     (9) The first meeting of the committee shall be called by the

 

director of the department. At its first meeting, the committee

 

shall elect from among its members a chairperson and other officers

as it considers necessary or appropriate. After the first meeting,

 

the committee shall meet at least quarterly.

 

     (10) A majority of the members of the committee constitute a

 

quorum for the transaction of business at a meeting of the

 

committee. A majority of members present and serving is required

 

for official action by the committee.

 

     (11) A committee member shall serve without compensation, but

 

may receive reimbursement for necessary travel and expenses

 

consistent with applicable law and rules and procedures of the

 

civil service commission and department of technology, management,

 

and budget, subject to available funding.

 

     (12) The business of the committee shall be conducted at a

 

public meeting held in compliance with the open meetings act, 1976

 

PA 267, MCL 15.261 to 15.275.

 

     (13) A writing prepared, owned, used, in the possession of, or

 

retained by the committee in the performance of an official

 

function is subject to the freedom of information act, 1976 PA 442,

 

MCL 15.231 to 15.246.

 

     (14) The department shall provide qualified administrative

 

staff and qualified technical assistance to the commission as

 

necessary.

 

     Sec. 29. (1) The following provisions of article I apply to

 

distributions from the fixing Michigan roads fund made under this

 

article:

 

     (a) Section 10c.

 

     (b) Section 11c.

 

     (c) Section 13a.

     (d) Section 16.

 

     (e) Section 17.

 

     (f) Sections 18b to 18l.

 

     (2) Notwithstanding any other provision of this article, road

 

agencies receiving money distributed from the fixing Michigan roads

 

fund shall expend annually at least 90% of money from the fixing

 

Michigan roads fund on the preservation or improvement of roads

 

classified under the federal system of National Functional

 

Classification as interstates, freeways, principal arterials, minor

 

arterials, or major collectors. This requirement can be waived

 

annually by the director of the department if a road agency can

 

demonstrate using data provided through the transportation asset

 

management council that the roads in those classifications for

 

which it is responsible are already in 90% good or fair condition.

 

     (3) Amounts distributed to county road agencies under this

 

section shall be expended by each county road commission for the

 

preservation, construction, acquisition, and extension of the

 

county road system, including the acquisition of a necessary right

 

of way for the system, and work incidental to the system, and shall

 

be returned to the county treasurers in the manner specified in

 

article I and under the terms and conditions specified in this

 

section.

 

     (4) Amounts distributed to cities and villages under this

 

section shall be returned to the treasurers of the cities and

 

villages for the preservation, construction, acquisition, and

 

extension of the street system as defined by this article,

 

including the acquisition of a necessary right of way for the

system, work incidental to the system, and for the payment of the

 

principal and interest on that portion of the city's or village's

 

general obligation bonds that are attributable to the construction

 

or reconstruction of the city's or village's major street system,

 

and under the terms and conditions specified in this section.

 

     Sec. 30. Notwithstanding any other provision of this act,

 

agencies receiving money distributed from the fixing Michigan roads

 

fund shall do all of the following:

 

     (a) Employ distributions from the fixing Michigan roads fund

 

on road and bridge projects in accordance with agency asset

 

management plans or asset management processes established under

 

sections 1g and 9a, and post a summary of that process to the

 

agency's website.

 

     (b) Include road projects to be funded with distributions from

 

the fixing Michigan roads fund in the annual multiyear programs

 

developed by each road agency in accordance with section 9a(11),

 

except that starting 1 year from the effective date of the

 

amendatory act that added this section, multiyear programs shall

 

include projects funded from the fixing Michigan roads fund

 

anticipated to be contracted for by the department or a local road

 

agency during a 5-year period.

 

     (c) Secure pavement warranties, where possible, for full

 

replacement or appropriate repair for contracted construction work

 

on pavement projects whose cost exceeds $2,000,000.00.

 

     Sec. 31. (1) The department and the transportation asset

 

management council working jointly shall establish a website

 

reporting on all road and bridge projects funded from the fixing

Michigan roads fund by all agencies. The website shall receive and

 

publish information reported through the investment reporting tool

 

provided by this state.

 

     (2) Recipients of distributions from the fixing Michigan roads

 

fund shall, at a minimum, post a list or map of all projects funded

 

by distributions from the fixing Michigan roads fund to a public

 

website, and may include all projects funded under this act.

 

     (3) Recipients of distributions from the fixing Michigan roads

 

fund shall use the investment reporting tool provided by this

 

state, or a successor system, annually to report for publication on

 

the statewide website provided under subsection (1) all projects

 

funded under this act, including at a minimum all of the following:

 

     (a) Project route name and location by miles points or

 

intersecting street names.

 

     (b) Estimated project cost.

 

     (c) Construction start date or year.

 

     (d) Year of project's anticipated completion or opening to

 

traffic.

 

     (e) Project work type or class of work according to the

 

definitions provided in guidance by the transportation asset

 

management council.

 

     (4) Within 1 year of the effective date of the amendatory act

 

that added this section, the department jointly with interested

 

local road agencies, the Michigan Municipal League, and the County

 

Road Association, shall review the process established under 23 CFR

 

470.105(b) for developing and updating the system of National

 

Functional Classification of roads, in accordance with applicable

federal rules and guidance.

 

     Sec. 32. If a section, subsection, subdivision, clause, or

 

provision of this act is adjudged unconstitutional or is

 

ineffective, the remainder of this act shall be valid and

 

effective. Any other section, subsection, subdivision, clause, or

 

provision of this act shall not on account of that judgment be

 

considered invalid or ineffective and the inapplicability or

 

invalidity of a section, subsection, subdivision, clause, or

 

provision of this act in 1 or more instances or under 1 or more

 

circumstances shall not be taken to affect or prejudice in any way

 

its applicability or validity in any other instance or under any

 

other circumstance.