Bill Text: MI HB5648 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Highways; other; local agency wetland mitigation bank fund advisory board; eliminate, and distribute money allocated to local agency wetland mitigation bank to the Michigan Municipal Wetland Alliance and the department of natural resources. Amends secs. 10 & 11h of 1951 PA 51 (MCL 247.660 & 247.661h) & adds sec. 11i.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-02-28 - Bill Electronically Reproduced 02/27/2018 [HB5648 Detail]

Download: Michigan-2017-HB5648-Introduced.html

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HOUSE BILL No. 5648

 

 

February 27, 2018, Introduced by Rep. Victory and referred to the Committee on Natural Resources.

 

     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 10 and 11h (MCL 247.660 and 247.661h), section

 

10 as amended and section 11h as added by 2016 PA 246, and by

 

adding section 11i.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 Until the effective date of the amendatory act that

 

added section 11i, 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 bank 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 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):

 

     (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 pursuant to 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)(c) 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. 11h. (1) The local agency wetland mitigation bank 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.

 

     (2) The money appropriated to the local agency wetland

 

mitigation bank fund and the interest accruing to that fund shall

 

be expended for the local agency wetland mitigation bank program.

 

The balance of the fund shall not exceed $5,000,000.00 at the

 

beginning of a fiscal year, less the amount of funds that have been

 

obligated but not yet expended. The money in the local agency

 

wetland mitigation bank fund is not subject to section 12(15).

 

     (3) The local agency wetland mitigation bank advisory board is

 

created and shall consist of the following 9 members:

     (a) One voting member appointed by the County Road Association

 

of Michigan from a county with a population greater than 400,000.

 

     (b) One voting member appointed by the County Road Association

 

of Michigan from a county with a population greater than 65,000 but

 

no more than 400,000.

 

     (c) One voting member appointed by the County Road Association

 

of Michigan from a county with a population of less than 65,000.

 

     (d) One voting member who shall be an engineer appointed

 

jointly by the County Road Association of Michigan and the Michigan

 

Municipal League.

 

     (e) One voting member appointed by the Michigan Municipal

 

League from a city with a population of more than 70,000.

 

     (f) One voting member appointed by the Michigan Municipal

 

League from a city with a population of 70,000 or less.

 

     (g) One voting member appointed by the Michigan Municipal

 

League from a village.

 

     (h) Two nonvoting members appointed by the department and the

 

department of environmental quality.

 

     (4) The members first appointed to the board shall be

 

appointed no later than October 1, 2015.

 

     (5) Members of the board shall serve for terms of 2 years or

 

until a successor is appointed, whichever is later, except that of

 

the members first appointed 2 of the members appointed by the

 

County Road Association of Michigan and 2 of the members appointed

 

by the Michigan Municipal League shall serve for 1 year.

 

     (6) If a vacancy occurs on the board, the person that

 

appointed the vacating member shall make an appointment for the

unexpired term in the same manner as the original appointment.

 

     (7) A member of the board may be removed for incompetence,

 

dereliction of duty, malfeasance, misfeasance, or nonfeasance in

 

office, or any other good cause.

 

     (8) The first meeting of the board shall be called by the

 

member appointed by the department under subsection (3)(h). At the

 

first meeting, the board shall elect from among its voting members

 

a chairperson and other officers as it considers necessary or

 

appropriate. After the first meeting, the board shall meet at least

 

quarterly.

 

     (9) A majority of the voting members of the board constitute a

 

quorum for the transaction of business at a meeting of the board. A

 

majority of the members present and serving are required for

 

official action of the board.

 

     (10) A board 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 or

 

local road agency policies, subject to available funding. The board

 

may employ a part-time or full-time manager or engineer who shall

 

maintain and report the activities of the local agency wetland

 

mitigation bank fund to the board, work with local road agencies,

 

engineers, and environmental consultants to implement this section

 

and promote efficiency and economy in the operations of the local

 

agency wetland mitigation bank program, exercise general oversight

 

of construction to ensure that environmental laws and regulations,

 

plans, and specifications are followed, and perform other duties as

directed by the board.

 

     (11) The business that the board may perform shall be

 

conducted at a public meeting of the board held in compliance with

 

the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

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

 

retained by the board in the performance of an official function is

 

subject to the freedom of information act, 1976 PA 442, MCL 15.231

 

to 15.246.

 

     (13) The 2 nonvoting members of the board, the department, and

 

the department of environmental quality shall provide qualified

 

administrative staff and qualified technical assistance to the

 

board as necessary.

 

     (14) The local agency wetland mitigation bank program shall

 

provide grants to local road agencies for 1 or more of the

 

following:

 

     (a) Complete engineering and design for a wetland mitigation

 

bank.

 

     (b) Purchase of land for a wetland mitigation bank.

 

     (c) Construction of a wetland mitigation bank.

 

     (d) Monitoring and maintenance necessary to ensure that the

 

performance standards are or will be met.

 

     (e) Funding for a wetland mitigation bank established before

 

the effective date of the amendatory act that added this section.

 

     (15) Not more than 20% of a wetland mitigation bank may be

 

sold to the private sector, and any revenues generated from that

 

sale shall be deposited into the local agency wetland bank program

 

fund.

     (16) The board may approve the use of grant funds for other

 

activities needed to establish a wetland mitigation bank upon a

 

demonstrated need by a local road agency.

 

     (17) An application for a grant from the local agency wetland

 

mitigation bank program shall be made on a form approved by the

 

board and shall contain the information required by the board. A

 

grant application may be made at any time.

 

     (18) The board shall establish a review process for

 

considering grant applications under this section. No later than 90

 

days after receiving a grant application under this section, the

 

board shall notify the applicant in writing whether the grant is

 

approved or rejected. If the board fails to notify an applicant in

 

writing whether a grant is approved or rejected within 90 days

 

after receiving the grant application, the grant shall be

 

considered approved. Prior to releasing grant funds, the board

 

shall enter into a grant agreement with the grant recipient.

 

     (19) For each year in which the board receives grant

 

applications, the board shall report by October 1 to the standing

 

committees of the senate and the house of representatives with

 

primary jurisdiction over issues pertaining to transportation and

 

natural resources and the environment and to the senate and house

 

of representatives appropriations committees on the utilization of

 

funds from the local agency wetland mitigation bank fund. The

 

report shall include, at a minimum, all of the following:

 

     (a) The number of grant applications received under this

 

section.

 

     (b) The name of each local road agency applying for a grant,

and whether each application was approved or denied.

 

     (c) The amount of local match for each grant awarded.

 

     (d) The individual and annual cumulative amount of grant funds

 

awarded, including an identification of the purpose of each grant

 

awarded.

 

     (20) Beginning on the effective date of the amendatory act

 

that added this subsection, this section is no longer effective.

 

     Sec. 11i. (1) Beginning on the effective date of the

 

amendatory act that added this section, the local agency wetland

 

mitigation bank advisory board is dissolved. The board shall

 

provide all pending grant applications submitted under section 11h

 

to the Michigan Municipal Wetland Alliance and the department of

 

natural resources.

 

     (2) Beginning on the effective date of the amendatory act that

 

added this section, the state treasurer shall distribute all money

 

in the local agency wetland mitigation bank fund equally to the

 

Michigan Municipal Wetland Alliance and the wetland mitigation bank

 

maintained by the department of natural resources as provided in

 

section 5204f of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.5204f.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.