Bill Text: MI HB5460 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Transportation; funds; collection, distribution, and allocation of Michigan transportation funds; modify formula. Amends sec. 10 of 1951 PA 51 (MCL 247.660).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-09-24 - Printed Bill Filed 09/24/2009 [HB5460 Detail]

Download: Michigan-2009-HB5460-Introduced.html

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HOUSE BILL No. 5460

 

September 23, 2009, Introduced by Rep. Byrnes 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 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 section 10 (MCL 247.660), as amended by 2007 PA 210.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

fund is established and shall be set up and maintained in the state

 

treasury as a separate fund. Money received and collected under the

 

motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170, except a

 

license fee provided in that act, and a tax, fee, license, and

 

other money received and collected under sections 801 to 810 of the

 

Michigan vehicle code, 1949 PA 300, MCL 257.801 to 257.810, except

 

a truck safety fund fee provided in section 801(1)(k) of the

 

Michigan vehicle code, 1949 PA 300, MCL 257.801, and money received

 

under the motor carrier act, 1933 PA 254, MCL 475.1 to 479.43,

 

shall be deposited in the state treasury to the credit of the

 

Michigan transportation fund. In addition, income or profit derived

 

from the investment of money in the Michigan transportation fund

 

shall be deposited in the Michigan transportation fund. 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 funds for the

 

necessary expenses incurred in the administration and enforcement

 

of the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170,

 

the motor carrier act, 1933 PA 254, MCL 475.1 to 479.43, and

 

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

 

257.801 to 257.810. Funds appropriated for necessary expenses shall

 

be based upon established cost allocation methodology that reflects

 

actual costs. Appropriations for the necessary expenses incurred by

 

the department of state in administration and enforcement of

 

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

 

257.801 to 257.810, shall be made from the Michigan transportation

 

fund and from funds 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 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 for the

 

fiscal year ending September 30, 2006. For the fiscal year ending

 

September 30, 2006, the legislature may appropriate funds in excess

 

of $20,000,000.00 from the Michigan transportation fund for all

 

incremental additional expenses incurred by the department of state

 

in enforcing sections 801 to 810 of the Michigan vehicle code, 1949

 

PA 300, MCL 257.801 to 257.810, that arise because of the

 

replacement of standard design registration license plates as

 

provided in section 224 of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.224. All money in the Michigan transportation fund is

 

apportioned and appropriated in the following manner:

 

     (a) Not more than $3,000,000.00 $6,000,000.00 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 less than $3,000,000.00 each year to the local bridge

 

fund established in subsection (5) (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 (10) (9).

 

     (c) 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 state trunk line fund, county road commissions, and cities and

 

villages in the percentages provided in subdivision (i).

 

     (d) Until September 30, 2004, all 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 repair

 

of state bridges under section 11. Beginning October 1, 2004 and

 

continuing through September 30, 2005, 3/4 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, shall be appropriated to the state

 

trunk line fund for the repair of state bridges under section 11,

 

and 1/4 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, shall

 

be appropriated to the local bridge fund created in subsection (5)

 

for distribution only to cities, villages, and county road

 

commissions. Beginning October 1, 2005, 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, shall be appropriated 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, shall

 

be appropriated to the local bridge fund created in subsection (5)

 

for distribution only to cities, villages, and county road

 

commissions.

 

     (c) $22,000,000.00 to the local bridge fund established in

 

subsection (4) for distribution only to cities, villages, and

 

county road commissions.

 

     (d) $22,000,000.00 to the state trunk line fund for repair of

 

state bridges under section 11.

 

     (e) $43,000,000.00 to the state trunk line fund for debt

 

service costs on state of Michigan projects.

 

     (f) Except as provided in subsection (4), 10% to the

 

comprehensive transportation fund for the purposes described in

 

section 10e.

 

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

 

subsection (5) (4) for distribution only to the local bridge

 

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

 

county road commissions.

 

     (h) $36,775,000.00 to the state trunk line fund for subsequent

 

deposit in the transportation economic development fund, and, as of

 

September 30, 1997, with first priority for allocation to debt

 

service on bonds issued to fund transportation economic development

 

fund projects. In addition, beginning October 1, 1997,

 

$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 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.

 

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

 

appropriated each fiscal year to the local program fund created in

 

section 11e.

 

     (j) The balance of the Michigan transportation fund as

 

follows, after deduction of the amounts appropriated in

 

subdivisions (a) through (i) and section 11b:

 

     (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 the state.

 

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

 

     (2) The money appropriated pursuant to 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

 

state chamber of commerce and the Michigan minority business

 

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 funds appropriated

 

to this state from the federal government pursuant to 23 USC 157

 

105, commonly known as minimum guarantee funds, shall be allocated

 

to the transportation economic development fund, if such an

 

allocation is consistent with federal law. These funds 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

 

funds allocated for distribution under this section shall be

 

eligible for obligation and use by all recipients as defined by the

 

transportation equity act for the 21st century, Public Law 105-178.

 

     (4) For the fiscal year beginning October 1, 2003 only, the

 

apportionment of 10% of Michigan transportation fund money to the

 

comprehensive transportation fund as provided in subsection (1)(f)

 

shall be reduced by $10,000,000.00 and the $10,000,000.00 shall be

 

transferred to the state trunk line fund for capacity improvements

 

to state trunk line highways.

 

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

 

established and is set up and maintained 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

 

state transportation 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. Names

 

shall be submitted within 45 days after October 1, 2004. The state

 

transportation commission shall make the appointments by January

 

30, 2005. 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) (6) Beginning October 1, 2005, no less than 5% and no more

 

than 15% of the funds 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. Beginning October 1, 2005,

 

funds remaining after the funds allocated for critical large bridge

 

repair and emergencies are 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 state transportation department in each

 

region. The members of the state transportation department shall be

 

nonvoting members who shall provide qualified administrative staff

 

and qualified technical assistance to the regional councils.

 

     (6) (7) Beginning October 1, 2005, funds 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) (8) Beginning October 1, 2005, the regional bridge

 

councils shall allocate the funds 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) (9) Beginning January 1, 2007 and each January after 2007,

 

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 (7) (6).

 

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

 

     (e) A listing of what specific projects were funded pursuant

 

to subsection (8) (7).

 

     (9) (10) 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 (6) (5). The bonds or notes issued

 

pursuant to this subsection may be issued by the commission for any

 

purpose for which other local bridge funds 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) (11) The state transportation department shall promulgate

 

rules pursuant to 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) (12) Beginning October 1, 2004, the revenue appropriated

 

to the local bridge fund pursuant to subsection (1)(d) shall be

 

distributed only to the local bridge advisory board, the regional

 

bridge councils, cities, villages, and county road commissions.

 

     (12) (13) Beginning October 1, 2008, the regional bridge

 

councils shall determine what bridge projects are selected for

 

funding from the local bridge fund created in subsection (5) (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 funds.

 

     (13) (14) Beginning October 1, 2008, 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 funds 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 funds 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 funds by the

 

regional bridge council. Based on available local bridge funds,

 

when a bridge project that was implemented with borrowed funds 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 funds were borrowed. To be eligible for repayment of

 

the amount borrowed, a bridge project that has been implemented

 

with borrowed funds shall be administered through the department's

 

local bridge program.