Bill Text: MI HB5335 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: State agencies (proposed); boards and commissions; Michigan infrastructure council; establish. Creates new act. TIE BAR WITH: HB 5406'18, HB 5408'18
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-08-15 - Assigned Pa 323'18 With Immediate Effect [HB5335 Detail]
Download: Michigan-2017-HB5335-Engrossed.html
HB-5335, As Passed Senate, June 12, 2018
SUBSTITUTE FOR
HOUSE BILL NO. 5335
A bill to create the Michigan infrastructure council; and to
prescribe the powers and duties of certain state and local agencies
and officials.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"Michigan infrastructure council act".
Sec. 2. As used in this act:
(a) "Asset" means infrastructure related to drinking water,
wastewater, stormwater, transportation, energy, or communications,
including, but not limited to, drinking water supply systems,
wastewater systems, stormwater systems, drains, roads, bridges,
broadband and communication systems, and electricity and natural
gas networks.
(b) "Asset class" means a single type of asset including its
network and all associated appurtenances critical to its
performance.
(c) "Asset management" means an ongoing process of
maintaining, preserving, upgrading, and operating physical assets
cost-effectively, based on a continuous physical inventory and
condition assessment and investment to achieve performance goals.
(d) "Asset management plan" means a set of procedures to
manage assets through their life cycles, based on principles of
life cycle costing. An asset management plan may be used as a tool
to help an asset owner implement its asset management program.
(e) "Asset owner" means a person that owns or operates an
asset.
(f) "Department" means the department of treasury.
(g) "Performance goals" means standards of system performance
that reflect asset management principles for asset preservation and
sustainability, operations, capacity consistent with local needs,
and identified levels of service.
(h) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(i) "Region" means the geographic jurisdiction of any of the
following:
(i) A regional planning commission created pursuant to 1945 PA
281, MCL 125.11 to 125.25.
(ii) A regional economic development commission created
pursuant to 1966 PA 46, MCL 125.1231 to 125.1237.
(iii) A metropolitan area council formed pursuant to the
metropolitan councils act, 1989 PA 292, MCL 124.651 to 124.729.
(iv) A metropolitan planning organization established pursuant
to federal law.
(v) An agency directed and funded by section 822f of article
VIII of 2016 PA 268, to engage in joint decision-making practices
related, but not limited to, community development, economic
development, talent, and infrastructure opportunities.
(j) "Transportation asset management council" means the
transportation asset management council created in section 9a of
1951 PA 51, MCL 247.659a.
(k) "Water asset management council" means the water asset
management council created in section 5002 of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.5002.
Sec. 3. (1) The Michigan infrastructure council is created
within the department.
(2) The Michigan infrastructure council consists of the
following:
(a) Nine voting members appointed pursuant to subsection (3)
who are representative of 1 or more of the following:
(i) Asset management experts from the public and private
sectors with knowledge of and expertise in the areas of planning,
design, construction, management, operations and maintenance for
drinking water, wastewater, stormwater, transportation, energy, and
communications.
(ii) Financial and procurement experts from the public or
private sector.
(iii) Experts in regional asset management planning across
jurisdictions and infrastructure sectors.
(b) The following nonvoting members:
(i) The chairperson of the water asset management council or
his or her designee.
(ii) The chairperson of the transportation asset management
council or his or her designee.
(iii) The director of the department of agriculture and rural
development or his or her designee.
(iv) The director of the department of environmental quality
or his or her designee.
(v) The director of the department of natural resources or his
or her designee.
(vi) The director of the department of technology, management,
and budget or his or her designee.
(vii) The director of the state transportation department or
his or her designee.
(viii) The state treasurer or his or her designee.
(ix) The chairperson of the Michigan public service commission
or his or her designee.
(3) Voting members of the Michigan infrastructure council
under subsection (2)(a) shall be appointed as follows:
(a) Five by the governor.
(b) One by the senate majority leader.
(c) One by the speaker of the house of representatives.
(d) One by the senate minority leader.
(e) One by the house minority leader.
(4) The voting members first appointed to the Michigan
infrastructure council must be appointed within 60 days after the
effective date of this act.
(5) The voting members of the Michigan infrastructure council
serve for terms of 3 years or until a successor is appointed,
whichever is later, except as follows:
(a) Of the members first appointed under subsection (3)(a), 1
shall serve for 2 years, 1 shall serve for 1 year, and 3 shall
serve for 3 years.
(b) Of the members first appointed under subsection (3)(b),
(c), (d), and (e), 2 shall serve for 2 years and 2 shall serve for
1 year.
(6) A vacancy on the Michigan infrastructure council shall be
filled for the unexpired term in the same manner as the original
appointment.
(7) A member of the Michigan infrastructure council may be
removed for incompetence, dereliction of duty, malfeasance during
his or her tenure in office, or any other cause considered
appropriate by the office for whom the appointment was made.
(8) The governor shall call the first meeting of the Michigan
infrastructure council within 90 days after the effective date of
this act. At the first meeting, the Michigan infrastructure council
shall elect from among its members a chairperson and other officers
as it considers appropriate. After the first meeting, the Michigan
infrastructure council shall meet at least quarterly, or more
frequently at the call of the chairperson or if requested by 3 or
more members.
(9) A majority of the voting members of the Michigan
infrastructure council and a majority of the nonvoting members of
the Michigan infrastructure council constitute a quorum for the
transaction of business at a meeting of the Michigan infrastructure
council. An affirmative vote of a majority of the voting members of
the Michigan infrastructure council is required for official action
of the Michigan infrastructure council.
(10) The Michigan infrastructure council shall perform its
business at a public meeting of the Michigan infrastructure council
held in compliance with the open meetings act, 1976 PA 267, MCL
15.261 to 15.275.
(11) A writing created by the Michigan infrastructure 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.
(12) Members of the Michigan infrastructure council serve
without compensation. However, members of the Michigan
infrastructure council may be reimbursed for their actual and
necessary expenses incurred in the performance of their official
duties as members of the Michigan infrastructure council.
(13) The departments of agriculture and rural development;
environmental quality; natural resources; technology, management,
and budget; transportation; and treasury shall provide qualified
administrative and technical staff to the Michigan infrastructure
council.
(14) The department of technology, management, and budget
shall serve as the central data storage agency for the statewide
database provided for in this act.
Sec. 4. (1) The Michigan infrastructure council shall do all
of the following:
(a) Develop a multiyear program, work plan, budget, and
funding recommendation for asset management; update these every
year; and provide these to the governor and the legislature by
September 30 every year.
(b) Ensure that the work plan in subdivision (a) includes an
emphasis on coordination and integration across asset classes and
regions.
(c) Prepare an annual report on the current statewide asset
management assessment that tracks progress on established
performance goals.
(d) Undertake research and advise on matters relating to asset
management, including all of the following:
(i) Funding and financing models.
(ii) Best practices.
(iii) Information technology advancements.
(iv) Emerging technology to advance smart systems.
(v) Right sizing and cost-efficiencies.
(vi) Impediments to delivery.
(vii) Opportunities for greater coordination and collaboration
across asset classes and asset owners.
(viii) Align and link state incentives to asset performance
improvement goals, including cost control, asset management,
operational efficiency, and cost-effective regional solutions.
(e) Within 180 days after its first meeting, evaluate the
regional infrastructure asset management pilot program created
under Executive Directive 2017-1, and the findings of the 21st
Century Infrastructure Commission created in Executive Order No.
2016-5, and develop and publish a 3-year strategy for establishing
a statewide integrated asset management system. The initial
multiyear program, work plan, budget, and funding recommendation
under subdivision (a) must include development of the strategy for
establishing a statewide integrated asset management system. The
strategy must also include, at a minimum, all of the following:
(i) A determination of appropriate assets within the asset
classes.
(ii) Consistent data standards and definitions for each asset
class.
(iii) Identify and designate a process to plan, analyze, and
coordinate asset management across assets and asset owners at the
regional level. This process may be implemented through regional
planning agencies, the regional prosperity initiative regions, or
another approach, which may vary among regions, that ensures all
areas of the state are included and efforts are consistent with
state and federal requirements. Regions shall be responsible for
maintaining and managing the statewide database at a regional
level.
(iv) Procedures for data storage, collecting, updating, and
reporting.
(v) Recommendations related to the appropriate level of
financial support for local asset data collection, local
development of asset management plans, regional review and
collaboration, and participation in an integrated statewide asset
management system.
(vi) A process to coordinate the planning efforts of the
transportation asset management council, the water asset management
council, the Michigan public service commission, and the Michigan
economic development corporation, with other state-required asset
management planning requirements. In coordinating planning efforts
under this subparagraph, the Michigan infrastructure council shall
endeavor to provide efficiencies to the planning process and to
reduce any unnecessary duplication of effort.
(vii) Coordination with the transportation asset management
council and the water asset management council to ensure that
training and education programs that address all of the following
are coordinated across assets:
(A) Asset management principles and plan development.
(B) The use of the statewide database.
(C) Ongoing user support.
(D) State department asset management requirements.
(viii) Develop statewide performance goals for appropriate
assets within each asset class and identify regional and statewide
progress toward meeting performance goals.
(ix) Protocols that ensure data security and accuracy at the
local, regional, and state levels.
(x) Development of consistent and coordinated state
department, transportation asset management council, and water
asset management council asset management plan components and
requirements including, but not limited to:
(A) Asset inventory, condition assessment, and uniform data.
(B) Performance goals.
(C) Revenue structure, investment strategy, and capital
improvement plan.
(D) Asset criticality and risk analysis.
(E) Public engagement and transparency.
(F) Self-assessment of asset management maturity.
(G) Reports at an asset owner, regional, and statewide level.
Reporting levels should take into account the size and complexity
of the network or system. Priority should be placed on the largest
systems.
(H) A resolution by the appropriate governing body approving
the plan.
(I) Certification that asset management is being coordinated
to the asset owners' best ability across asset classes and
regionally.
(f) Beginning 3 years after the effective date of this act,
start the second phase of the statewide system for asset management
implementation and include, at a minimum, all of the following:
(i) Predictive analytics to forecast asset condition.
(ii) A public dashboard of state, regional, and local system
performance across asset classes, including the appropriate and
secure level of geospatial data and aggregated reporting.
(iii) Develop and publish a 30-year integrated infrastructure
strategy that is updated every 5 years and includes all of the
following:
(A) Current statewide condition assessment and infrastructure
priorities across asset classes, tracked progress on established
performance goals, and net changes in asset value.
(B) Investment needs to reach targeted overall system ratings
and performance goals, with a goal of leveling annual investments
to long-term predictable amounts.
(C) Network intelligence in asset management planning and
monitoring. Retrofit technologies should be considered, pursued,
and incorporated as they become available for upgrades and
maintenance activities to existing and future assets.
(2) The multiyear programs, work plans, budgets, and funding
recommendations required in subsection (1)(a), the annual reports
required by subsection (1)(c), the 3-year strategy for establishing
a statewide integrated asset management system required by
subsection (1)(e), and the second phase of the statewide system for
asset management implementation required in subsection (1)(f) shall
comply with both of the following:
(a) Not propose, recommend, or fund any government-owned
broadband or telecommunications network to provide service to
residential or commercial premises, except that this prohibition
does not apply to state expenditures for a transportation purpose,
connected vehicle communication technologies, or other
transportation-related activities.
(b) To the extent government funding is proposed or
recommended to subsidize non-government-owned broadband networks to
expand service to residential or commercial premises, require that
the proposals and recommendations must be limited to areas unserved
by broadband, must be technology neutral, and include a competitive
bid process that results in the award of the subsidy based on
objective and efficient procedures.
Sec. 5. (1) This act does not authorize the Michigan
infrastructure council to place any obligations or requirements on
providers of telecommunications services, broadband services, or
wireless services.
(2) Any network or financial information provided to the
Michigan infrastructure council by a provider of telecommunications
services, broadband services, or wireless services is exempt from
disclosure under section 13(1)(d) of the freedom of information
act, 1976 PA 442, MCL 15.243, provided that it is marked as
confidential or commercial information. The Michigan infrastructure
council shall preserve the confidentiality of this information.
Sec. 6. Funding necessary to support the activities described
in this act shall be provided through funds as provided by law.
Enacting section 1. This act does not take effect unless all
of the following bills of the 99th Legislature are enacted into
law:
(a) House Bill No. 5406.
(b) House Bill No. 5408.