Bill Text: MI HB5304 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Transportation; funds; conditions for funding; change, and create sunset for meetings of the complete streets advisory council if the state transportation commission adopts a complete streets policy. Amends secs. 1c, 10a, 10p & 13 of 1951 PA 51 (MCL 247.651c et seq.) & repeals sec. 10a of 1951 PA 51 (MCL 247.660a). TIE BAR WITH: HB 5303'12

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2012-01-31 - Printed Bill Filed 01/27/2012 [HB5304 Detail]

Download: Michigan-2011-HB5304-Introduced.html

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HOUSE BILL No. 5304

 

January 26, 2012, Introduced by Reps. Ouimet and Olson 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 sections 1c, 10a, 10p, and 13 (MCL 247.651c, 247.660a,

 

247.660p, and 247.663), section 1c as amended by 2010 PA 28,

 

section 10a as amended by 1992 PA 137, section 10p as added by 2010

 

PA 135, and section 13 as amended by 2010 PA 261; and to repeal

 

acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1c. (1) The state transportation department shall bear

 

the cost of opening, widening, and improving, including

 

construction and reconstruction, of all state trunk line highways,

 

in accordance with standards and specifications of the department.

 

, all state trunk line highways, subject to all of the following

 

provisions:

 

     (a) Incorporated cities and villages shall participate with

 

the department in the cost of opening, widening, and improving,

 

including construction and reconstruction of state trunk line

 

highways within cities and villages to which may be added, subject

 

to the approval of the state transportation commission, streets

 

that are connecting links of trunk line highways or streets that

 

are made connecting links of trunk line highways, according to the

 

following schedule subject to the definition of population as

 

provided in section 13:

 

     (i) In cities and villages having a population of 50,000 or

 

more, 12.5% of the cost shall be borne by the city or village, and

 

87.5% by the state transportation department.

 

     (ii) In cities and villages having a population of 40,000 or

 

more and less than 50,000, 11.25% of the cost shall be borne by the

 

city or village, and 88.75% by the state transportation department.

 

     (iii) In cities and villages having a population of 25,000 or

 

more and less than 40,000, 8.75% of the cost shall be borne by the

 

city or village, and 91.25% by the state transportation department

 

except in the case of projects related to international border

 

crossing, in which case the department shall bear the entire

 

project cost.

 

     (iv) In cities and villages having a population of less than

 

25,000, the state transportation department shall bear the entire

 

cost.

 

     (b) As used in this act, "opening, widening, and improving,

 

including construction and reconstruction, of state trunk line

 

highways" includes, but is not limited to, the cost of right of

 

way; the cost of removal and replacement of sidewalks, street

 

lighting, curbing, where removal and replacement is made necessary

 

by construction or reconstruction of a trunk line highway; and the

 

cost of bridges and structures, including that part of the cost of

 

grade separation structures not paid by the railroad companies.

 

     (2) (c) In a city or village, the width of a state trunk line

 

highway shall be the width required to serve anticipated future

 

traffic needs for a 20-year period as determined by a department

 

transportation survey, which width, except as prescribed by this

 

subdivision, but shall not be less than the currently accepted

 

standards prescribed for a 4-lane highway; the width as may be

 

built on the same trunk line route immediately beyond and adjacent

 

to either legal boundary of the city or village; or on trunk lines

 

eligible for federal highway funds, a width as may be prescribed by

 

the federal government, whichever width is greater. However, the

 

department and the governing body of a city or village by mutual

 

agreement may determine that the width of a state trunk line

 

highway shall be less than the width otherwise prescribed by this

 

subdivision.subsection.

 

     (3) (d) If a city or village shall desire chooses to widen a

 

state trunk line highway for local purposes beyond the width

 

prescribed in subdivision (c), subsection (2), the entire cost of

 

the extra width, less the federal highway funds which that may be

 

allocated to the portion of the project by the department, shall be

 

borne by the city or village.

 

     (4) (e) The state transportation commission and the boards of

 

county road commissioners may enter into agreements with townships

 

or private persons for the improvement or widening of state trunk

 

line highways or county roads. The state transportation commission

 

and the boards of county road commissioners may require full or

 

partial participation in the cost of the improvement or widening by

 

the requesting party as considered appropriate.

 

     (5) As used in this section, "opening, widening, and

 

improving, including construction and reconstruction, of all state

 

trunk line highways" includes, but is not limited to, the cost of

 

right of way; the cost of removal and replacement of sidewalks,

 

street lighting, and curbing, where removal and replacement are

 

made necessary by construction or reconstruction of a trunk line

 

highway; and the cost of bridges and structures, including that

 

part of the cost of grade separation structures not paid by the

 

railroad companies.

 

     Sec. 10a. (1) Annually the state transportation The department

 

shall annually determine the miles of state trunk line highways,

 

county primary and local roads, and city and village major and

 

local streets transferred to and from state, county, city, or

 

village jurisdiction during the preceding period of July 1 to June

 

30. In each year after that determination, the transferred mileage

 

shall be accumulated and added to the mileage transferred in each

 

subsequent July 1 to June 30 period.

 

     (2) The current average revenue worth per mile of a county

 

primary road and a county local road shall be determined annually

 

by dividing the total county primary and local road mileages

 

respectively as of the first day of the preceding July 1 to June 30

 

period into the total amount of Michigan transportation funds

 

returned to counties pursuant to this act for use on county primary

 

and local roads respectively during that period, except money

 

returned to counties pursuant to section 12(2) and (3).

 

     (3) The total amount of money to be transferred from and to

 

the state trunk line fund, the counties, cities, and villages shall

 

be determined annually by multiplying the current revenue worth per

 

mile of a county primary road and a county local road respectively

 

by the number of accumulated miles in each category transferred

 

from and to state, county, city, or village jurisdiction. If the

 

transferred facility road becomes classified as part of the local

 

road or street system of the receiving jurisdiction, the transfer

 

of money shall be calculated on the basis of the revenue worth per

 

mile of a county local road. In any other category of

 

jurisdictional transfer, the transfer of money shall be calculated

 

on the basis of the revenue worth per mile of a county primary

 

road.

 

     (4) For jurisdictional transfers made from the state to a

 

county, city, or village after July 1, 1992, the amount in the

 

state trunk line fund to be transferred shall be transferred to the

 

county, city, or village receiving jurisdiction. If the transferred

 

highway is then classified as part of the local road or street

 

system of the receiving jurisdiction, the transfer of money to the

 

receiving jurisdiction shall be calculated on the basis of the

 

revenue worth per mile of a county local road as determined in

 

subsection (2). If the transferred highway is then classified as

 

part of the primary road or major street system of the receiving

 

jurisdiction, the transfer of money to the receiving jurisdiction

 

shall be calculated on the basis of the revenue worth per mile of a

 

county primary road as determined in subsection (2). This

 

subsection and subsection (5) shall do not be construed to effect

 

affect contracts entered into before or after the effective date of

 

this subsection July 15, 1992 pursuant to Act No. 166 of the Public

 

Acts of 1965, being sections 408.551 to 408.558 of the Michigan

 

Compiled Laws, 1965 PA 166, MCL 408.551 to 408.558, for the

 

maintenance of a transferred highway.

 

     (5) In cities and villages with a population of 25,000 or

 

more, trunk line mileage that is transferred to local jurisdiction

 

after July 1, 1992 and is then classified as a major street shall

 

be certified at twice its measured length.

 

     (6) The transfer of funds under this section shall be included

 

each year in the October appropriation of the Michigan

 

transportation fund.

 

     (7) This section is repealed effective September 30, 2019.

 

     Sec. 10p. (1) As used in this section:

 

     (a) "Complete streets" means roadways planned, designed, and

 

constructed to provide appropriate access to all legal users in a

 

manner that promotes safe and efficient movement of people and

 

goods whether by car, truck, transit, assistive device, foot, or

 

bicycle.

 

     (b) "Complete streets policy" means a document that provides

 

guidance for the planning, design, and construction of roadways or

 

an interconnected network of transportation facilities being

 

constructed or reconstructed and designated for a transportation

 

purpose that promotes complete streets and meets all of the

 

following requirements:

 

     (i) Is sensitive to the local context and recognizes that needs

 

vary according to urban, suburban, and rural settings.

 

     (ii) Considers the functional class of the roadway and project

 

costs and allows for appropriate exemptions.

 

     (iii) Considers the varying mobility needs of all legal users of

 

the roadway, of all ages and abilities.

 

     (c) "Department" means the state transportation department.

 

     (d) "Local road agency" means that term as defined in section

 

9a.

 

     (e) "Municipality" means a city, village, or township.

 

     (2) The state transportation commission shall do both of the

 

following by not later than 2 years after the effective date of the

 

amendatory act that added this section:August 2, 2012:

 

     (a) Adopt a complete streets policy for the department.

 

     (b) Develop a model complete streets policy or policies to be

 

made available for use by municipalities and counties.

 

     (3) Before a municipality approves any project in its

 

multiyear capital program that affects a roadway or transportation

 

facility under the jurisdiction of the state transportation

 

department or within or under the jurisdiction of a county or

 

another municipality, it shall consult with the affected agency and

 

agree on how to address the respective complete streets policies,

 

subject to each agency's powers and duties. Before the department

 

submits its multiyear capital plan to the state transportation

 

commission or a county road agency approves its multiyear capital

 

plan, for any project that affects a roadway or transportation

 

facility within or under the jurisdiction of a municipality, the

 

department or county road agency shall consult with the

 

municipality and agree on how to address the respective complete

 

streets policies, subject to each agency's powers and duties.

 

Failure to come to an agreement shall not prevent the department

 

from submitting its multiyear capital plan to the state

 

transportation commission. This subsection does not apply under any

 

of the following circumstances:

 

     (a) If neither the agency proposing the project nor the

 

affected agency has a complete streets policy.

 

     (b) If the project was included in a municipality's multiyear

 

capital program or the department's or a county's multiyear capital

 

plan on July 1, 2010.

 

     (4) The department may provide assistance to and coordinate

 

with local agencies in developing and implementing complete streets

 

policies. The department shall share expertise in nonmotorized and

 

multimodal transportation planning in the development of trunk line

 

projects within municipal boundaries.

 

     (5) The department, local road agencies, and municipalities

 

may enter into agreements with each other providing for maintenance

 

of transportation facilities constructed to implement a complete

 

streets policy.

 

     (6) A complete streets advisory council is created within the

 

department. The advisory council shall consist of the following

 

members appointed by the governor:

 

     (a) The director of the state transportation department or his

 

or her designee.

 

     (b) The director of the department of community health or his

 

or her designee.

 

     (c) The director of the department of state police or his or

 

her designee.

 

     (d) One individual representing the state transportation

 

commission.

 

     (e) One individual representing environmental organizations.

 

     (f) One individual representing planning organizations.

 

     (g) One individual representing organizations of disabled

 

persons.

 

     (h) One individual representing road commission organizations.

 

     (i) One individual representing public transit users

 

organizations.

 

     (j) One licensed professional engineer or traffic engineer.

 

     (k) One individual representing the Michigan municipal league.

 

     (l) One individual representing the AARP.

 

     (m) One individual representing the league of Michigan

 

bicyclists.

 

     (n) One individual representing a pedestrian organization.

 

     (o) One individual representing the Michigan public transit

 

association.

 

     (p) One individual representing the Michigan townships

 

association.

 

     (q) As nonvoting members, the director of the department of

 

natural resources and environment or his or her designee, the

 

executive director of the Michigan state housing development

 

authority or his or her designee, and the heads of such other state

 

departments and agencies, as the governor considers appropriate, or

 

their designees.

 

     (7) The members first appointed to the advisory council shall

 

be appointed within 60 days after the effective date of this

 

section. August 2, 2010. Members of the advisory council shall

 

serve for terms of 3 years or until a successor is appointed,

 

whichever is later, except that of the members first appointed 3

 

shall serve for 1 year, 3 shall serve for 2 years, and 3 shall

 

serve for 3 years. If a vacancy occurs on the advisory council, the

 

governor shall make an appointment for the unexpired term in the

 

same manner as the original appointment. The governor may remove a

 

member of the advisory council for incompetency, dereliction of

 

duty, malfeasance, misfeasance, or nonfeasance in office, or any

 

other good cause.

 

     (8) The first meeting of the advisory council shall be called

 

by the director of the state transportation department. At the

 

first meeting, the advisory council shall elect from among its

 

members a chairperson, vice-chairperson, secretary, and other

 

officers as it considers necessary or appropriate. After the first

 

meeting and before 2018, through December 31, 2017, the advisory

 

council shall meet at least quarterly, or more frequently at the

 

call of the chairperson or if requested by 3 or more members. A

 

majority of the members of the advisory council constitute a quorum

 

for the transaction of business at a meeting of the advisory

 

council. The affirmative vote of a majority of the members are

 

required for official action of the advisory council.

 

     (9) The business that the advisory council may perform shall

 

be conducted at a public meeting of the advisory council held in

 

compliance with the open meetings act, 1976 PA 267, MCL 15.261 to

 

15.275. A writing prepared, owned, used, in the possession of, or

 

retained by the advisory council in the performance of an official

 

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

 

MCL 15.231 to 15.246.

 

     (10) Members of the advisory council shall serve without

 

compensation. However, members of the advisory council may be

 

reimbursed for their actual and necessary expenses incurred in the

 

performance of their official duties. as members of the advisory

 

council.

 

     (11) The advisory council shall do all of the following:

 

     (a) Provide education and advice to the state transportation

 

commission, county road commissions, municipalities, interest

 

groups, and the public on the development, implementation, and

 

coordination of complete streets policies.

 

     (b) By December 30, 2011, and each calendar year thereafter,

 

report to the governor, the state transportation commission, and

 

the legislature on the status of complete streets policies in this

 

state. The report shall contain a summary of the advisory council's

 

proceedings, a statement of instances in which the department and a

 

municipality were unable to agree under subsection (3) on a

 

department project affecting a roadway or transportation facility

 

within or under the jurisdiction of the municipality, and any other

 

necessary or useful information and any additional information that

 

may be requested by the governor.

 

     (c) Advise the state transportation commission on the adoption

 

of model policies under subsection (2).

 

     (12) If the state transportation commission adopts a complete

 

streets policy as required under subsection (2), the advisory

 

council shall conclude its duties under subsection (11) not later

 

than December 31, 2012.

 

     Sec. 13. (1) The Except as otherwise provided in subsection

 

(13), the amount distributed to cities and villages shall be

 

returned to the treasurers of the cities and villages in the

 

manner, for the purposes, and under the terms and conditions

 

specified in this section. As used in this section, "population"

 

means the population according to the most recent statewide federal

 

census as certified at the beginning of the state fiscal year,

 

except that, if a municipality has been newly incorporated since

 

completion of the census, the population of the municipality for

 

purposes of the distribution of funds before completion of the next

 

census shall be the population as determined by special federal

 

census, if there is a special federal census, and if not, by the

 

population as determined by the official census in connection with

 

the incorporation, if there is such a census and, if not, by a

 

special state census to be taken at the expense of the municipality

 

by the secretary of state pursuant to section 6 of the home rule

 

city act, 1909 PA 279, MCL 117.6. The amount received by the newly

 

incorporated municipality shall be in place of any other direct

 

distribution of funds from the Michigan transportation fund. The

 

population of the newly incorporated municipality as determined

 

under this section shall be added to the total population of all

 

incorporated cities and villages in the state in computing the

 

amounts to be returned under this section to each municipality in

 

the state. Major street mileage, local street mileage, and

 

equivalent major mileage, if applicable, shall be determined by the

 

state transportation department before the next month for which

 

distribution is made following the effective date of incorporation

 

of a newly incorporated municipality.

 

     (2) From Until September 30, 2013, from the amount available

 

for distribution to cities and villages during each December, an

 

amount equal to 0.7% of the total amount returned to all cities and

 

villages under subsections (3) and (4) during the previous calendar

 

year shall be withheld. The amount withheld shall be used to

 

partially reimburse those cities and villages located in those

 

counties that are eligible for snow removal funds pursuant to

 

section 12a and that have costs for winter maintenance on major and

 

local streets that are greater than the statewide average. The

 

distributions under this subsection shall be made annually during

 

February and shall be calculated separately for the major and local

 

street systems but may be paid in a combined warrant. The

 

distribution under this subsection to a city or village shall be

 

equal to 1/2 of its winter maintenance expenditures after deducting

 

the product of its total earnings under subsections (3) and (4)

 

multiplied by 2 times the average municipal winter maintenance

 

factor. Winter maintenance expenditures shall be determined from

 

the street financial reports for the most current fiscal years

 

ending before July 1. A city or village that does not submit a

 

street financial report for the fiscal year ending before July 1 by

 

the subsequent December 31 shall be ineligible for the winter

 

maintenance payment that is to be based on that street financial

 

report. The average municipal winter maintenance factor shall be

 

determined annually by the state transportation department by

 

dividing the total expenditures of all cities and villages on

 

winter maintenance of streets and highways by the total amount

 

earned by all cities and villages under subsections (3) and (4)

 

during the 12 months. If the sum of the distributions to be made

 

under this subsection exceeds the amount withheld, the

 

distributions to each eligible city and village shall be reduced

 

proportionately. If the sum is less than the amount withheld, the

 

balance shall be added to the amount available for distribution

 

under subsections (3) and (4) during the next month. The

 

distributions under this subsection shall be for use on the major

 

and local street systems respectively and shall be subject to the

 

same provisions as funds returned under subsections (3) and (4).

 

     (3) Seventy-five percent of the remaining amount to be

 

returned to the cities and villages from the Michigan

 

transportation fund, after deducting the amounts withheld pursuant

 

to subsection (2), shall be returned 60% in the same proportion

 

that the population of each bears to the total population of all

 

cities and villages, and 40% in the same proportion that the

 

equivalent major mileage in each bears to the total equivalent

 

major mileage in all cities and villages. As used in this section,

 

"equivalent major mileage" means the sum of 2 times the state trunk

 

line mileage certified by the state transportation department as of

 

March 31 of each year, as being within the boundaries of each city

 

and village having a population of 25,000 or more, plus the major

 

street mileage in each city and village, multiplied by the

 

following factor:

 

     1.0 for cities and villages of 2,000 or less population;

 

     1.1 for cities and villages from 2,001 to 10,000 population;

 

     1.2 for cities and villages from 10,001 to 20,000 population;

 

     1.3 for cities and villages from 20,001 to 30,000 population;

 

     1.4 for cities and villages from 30,001 to 40,000 population;

 

     1.5 for cities and villages from 40,001 to 50,000 population;

 

     1.6 for cities and villages from 50,001 to 65,000 population;

 

     1.7 for cities and villages from 65,001 to 80,000 population;

 

     1.8 for cities and villages from 80,001 to 95,000 population;

 

     1.9 for cities and villages from 95,001 to 160,000 population;

 

     2.0 for cities and villages from 160,001 to 320,000

 

population;

 

     and for cities over 320,000 population, by a factor of 2.1

 

increased successively by 0.1 for each 160,000 population increment

 

over 320,000. The amount returned under this subsection shall be

 

used by each city and village for the following purposes in the

 

following order of priority:

 

     (a) For the payment of contributions required to be made by a

 

city or village under the provisions of contracts previously

 

entered into under 1941 PA 205, MCL 252.51 to 252.64, which if

 

those contributions have been previously been pledged for the

 

payment of the principal and interest on bonds issued under that

 

act; or for the payment of the principal and interest upon bonds

 

issued by a city or village pursuant to under 1952 PA 175, MCL

 

247.701 to 247.707.

 

     (b) Payment of obligations of the city or village on highway

 

projects undertaken by the city or village jointly with the state

 

transportation department.

 

     (c) For the payment of principal and interest upon loans

 

received pursuant to under section 11(5), to the extent other funds

 

have not been made available for that payment.

 

     (d) For the preservation, construction, acquisition, and

 

extension of the major street system as defined by described in

 

this act including the acquisition of a necessary right of way for

 

the system, work incidental to the system, and an appurtenant

 

roadside park or motor parkway, of the city or village and for the

 

payment of the principal and interest on that portion of the city's

 

or village's general obligation bonds which are attributable to the

 

construction or reconstruction of the city's or village's major

 

street system. Not more than 5% per year of the funds returned to a

 

city or village by this subsection shall be expended for the

 

preservation or acquisition of appurtenant roadside parks and motor

 

parkways. Surplus funds may be expended for the development,

 

construction, or repair of off-street parking facilities, and the

 

construction or repair of street lighting, and transfer to the

 

local street system under subsection (6).

 

     (e) For capital outlay projects for equipment and buildings,

 

contributions pledged for the payment of loans and for the payment

 

of contractual debt service requirements for the payment of bonds

 

for the purpose of providing funds for capital outlay projects for

 

equipment and buildings necessary to the development and

 

maintenance of the road system so long as amounts allocated under

 

this subsection are used for transportation purposes.

 

     (4) The remaining amount to be returned to incorporated cities

 

and villages from the Michigan transportation fund shall be

 

expended in each city or village for the preservation,

 

construction, acquisition, and extension of the local street system

 

of the city or village, as defined by described in this act,

 

including the acquisition of a necessary right of way for the

 

system, work incidental to the system, and subject to subsection

 

(5), for the payment of the principal and interest on that portion

 

of the city's or village's general obligation bonds which that are

 

attributable to the construction or reconstruction of the city's or

 

village's local street system. The amount returned under this

 

subsection shall be returned to the cities and villages 60% in the

 

same proportion that the population of each bears to the total

 

population of all incorporated cities and villages in the state,

 

and 40% in the same proportion that the total mileage of the local

 

street system of each bears to the total mileage in the local

 

street systems of all cities and villages of the state. The payment

 

of the principal and interest upon bonds issued by a city or

 

village pursuant to 1952 PA 175, MCL 247.701 to 247.707, and after

 

that payment, the payment of debt service on loans received under

 

section 11(5), shall have priority in the expenditure of money

 

returned under this subsection.

 

     (5) Money distributed to each city and village for the

 

maintenance and preservation of its local street system under this

 

act represents the total responsibility of the state for local

 

street system support. Funds distributed from the Michigan

 

transportation fund shall not be expended for construction purposes

 

on city and village local streets except to the extent matched from

 

local revenues including other money returned to a city or village

 

by the state under the state constitution of 1963 and statutes of

 

the state, from funds that can be raised by taxation in cities and

 

villages for street purposes within the limitations of the state

 

constitution of 1963 and statutes of the state, from special

 

assessments, or from any other source.

 

     (6) Money returned under this section to a city or village

 

shall be expended on the major and local street systems of that

 

city or village. However, the first priority shall be the major

 

street system. Money returned for expenditure on the major street

 

system shall be expended in the priority order provided in

 

subsection (3) except that surplus funds may be transferred for

 

preservation of the local street system. Major street funds

 

transferred for use on the local street system shall not be used

 

for construction but may be used for preservation. as defined in

 

section 10c. A city or village shall not transfer more than 50% of

 

its annual major street funding for the local street system unless

 

it has adopted and is following an asset management process for its

 

major and local street systems and adopts a resolution with a copy

 

to the department setting forth all of the following:

 

     (a) A list of the major streets in that city or village.

 

     (b) A statement that the city or village is adequately

 

maintaining its major streets.

 

     (c) The dollar amount of the transfer.

 

     (d) The local streets to be funded with the transfer.

 

     (e) A statement that the city or village is following an asset

 

management process for its major and local street systems.

 

     (7) A city or village that has not adopted an asset management

 

plan shall obtain the concurrence of the department to transfer

 

more than 50% of its major street funding to its local street

 

system. The department may provide for pilot projects that would

 

allow a city or village that has adopted an asset management plan

 

under subsection (6) to combine their local and major street funds

 

into 1 street fund and to submit a single report to the department

 

on the expenditure of funds on the local and major street systems.

 

     (8) Not more than 10% per year of all of the funds returned to

 

a city or village from any source for the purposes of this section

 

may be expended for administrative expenses. As used in this

 

subsection, "administrative expenses" means those expenses that are

 

not assigned including, but not limited to, specific road

 

construction or maintenance projects and are often referred to as

 

general or supportive services. service expenses. Administrative

 

expenses shall not include net equipment expense, net capital

 

outlay, debt service principal and interest, and payments to other

 

state or local offices that are assigned, but not limited to,

 

specific road construction projects or maintenance activities. A

 

city or village which in a year that expends more than 10% for

 

administrative expenses shall be in 1 year is subject to section

 

14(5).

 

     (9) In each city and village to which funds are returned under

 

this section, the responsibility for street preservation and the

 

development, construction, or repair of off-street parking

 

facilities and construction or repair of street lighting shall be

 

coordinated by a single administrator to be designated by the

 

governing body who shall be is responsible for and shall represent

 

the municipality in transactions with the state transportation

 

department pursuant to this act.

 

     (10) Cities and villages may provide for consolidated street

 

administration. A city or a village may enter into an agreement

 

with other cities or villages, the county road commission, or with

 

the state transportation commission for the performance of street

 

or highway work on a road or street within the limits of the city

 

or village or adjacent to the city or village. The agreement may

 

provide for the performance by any of the contracting parties of

 

the work contemplated by the contracts including services and

 

acquisition of rights of way, by purchase or condemnation by any of

 

the contracting parties in its own name. The agreement may provide

 

for joint participation in the costs if appropriate.

 

     (11) Interest earned on funds returned to a city or a village

 

for purposes provided in this section shall be credited to the

 

appropriate street fund.

 

     (12) 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 cities and villages 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 notice to cities

 

and villages of the standards to be used for audits under this

 

subsection prior to the fiscal year in which the audit is

 

conducted. The department shall notify cities and villages of any

 

subsequent changes to the standards. Cities and villages shall make

 

the pertinent records available to the department of treasury the

 

pertinent records for the audit.

 

     (13) Beginning on January 1, 2015, the amount distributed from

 

the Michigan transportation fund to a city or village receiving

 

less than $50,000.00 from the Michigan transportation fund in

 

fiscal year 2012 shall be returned to the treasurer of the county

 

in which the city or village is located, for the purposes specified

 

in this section. This subsection does not apply to a city or

 

village described in section 10c(s)(iii) or (v).

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. ____ or House Bill No. 5303(request no.

 

04256'11) of the 96th Legislature is enacted into law.