Bill Text: MI HB5732 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Transportation; funds; continued funding for certain districts; provide for. Amends secs. 10c, 10h, 10l and 10n of 1951 PA 51 (MCL 247.660c et seq.). TIE BAR WITH: HB 5731'09
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2010-05-18 - Referred To Second Reading [HB5732 Detail]
Download: Michigan-2009-HB5732-Introduced.html
HOUSE BILL No. 5732
December 18, 2009, Introduced by Reps. Switalski, Johnson and Donigan and referred to the Committee on Intergovernmental and Regional Affairs.
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 sections 10c, 10h, 10l, and 10n (MCL 247.660c, 247.660h,
247.660l, and 247.660n), section 10c as amended by 2008 PA 485,
section 10h as amended by 2002 PA 498, section 10l as amended by
1987 PA 234, and section 10n as amended by 2002 PA 329.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10c. As used in this act:
(a) "Urban or rural area" means a contiguous developed area,
including the immediate surrounding area, where transportation
services should reasonably be provided presently or in the future;
the area within the jurisdiction of an eligible authority; or for
the purpose of receiving funds for public transportation, a
contiguous developed area having a population of less than 50,000
that has an urban public transportation program approved by the
state transportation department and for which the state
transportation commission determines that public transportation
services should reasonably be provided presently or in the future.
(b) "Eligible authority" means an authority organized under
the metropolitan transportation authorities act of 1967, 1967 PA
204, MCL 124.401 to 124.426, or an authority organized or continued
under the regional transportation authority act.
(c) "Eligible governmental agency" means a county, city, or
village or an authority created under 1963 PA 55, MCL 124.351 to
124.359; the urban cooperation act of 1967, 1967 (Ex Sess) PA 7,
MCL 124.501 to 124.512; 1967 (Ex Sess) PA 8, MCL 124.531 to
124.536; 1951 PA 35, MCL 124.1 to 124.13; the public transportation
authority act, 1986 PA 196, MCL 124.451 to 124.479; or the revenue
bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140.
(d) "Transit vehicle" means a bus, rapid transit vehicle,
railroad car, street railway car, water vehicle, taxicab, or other
type of public transportation vehicle or individual unit, whether
operated singly or in a group which provides public transportation.
(e) "Transit vehicle mile" means a transit vehicle operated
for 1 mile in public transportation service including demand
actuated and line-haul vehicle miles.
(f) "Demand actuated vehicle" means a bus or smaller transit
vehicle operated for providing group rides to members of the
general public paying fares individually, and on demand rather than
in regularly scheduled route service.
(g) "Demand actuated vehicle mile" means a demand actuated
vehicle operated for 1 mile in service to the general public.
(h) "Public transportation", "comprehensive transportation",
"public transportation service", "comprehensive transportation
service", "public transportation purpose", or "comprehensive
transportation purpose" means the movement of people and goods by
publicly or privately owned water vehicle, bus, railroad car,
street railway, aircraft, rapid transit vehicle, taxicab, or other
conveyance which provides general or special service to the public,
but not including charter or sightseeing service or transportation
which is exclusively for school purposes. Public transportation,
public transportation services, or public transportation purposes;
and comprehensive transportation, comprehensive transportation
services, or comprehensive transportation purposes as defined in
this subdivision are declared by law to be transportation purposes
within the meaning of section 9 of article IX of the state
constitution of 1963.
(i) "State transportation commission" means the state
transportation commission established in section 28 of article V of
the state constitution of 1963.
(j) "Governmental unit" means the state transportation
department, the state transportation commission, a county road
commission, a city, or a village.
(k) "Department" or "department of transportation" means the
state transportation department, the principal department of state
government created under section 350 of the executive organization
act of 1965, 1965 PA 380, MCL 16.450.
(l) "Preservation" means an activity undertaken to preserve the
integrity of the existing roadway system. Preservation does not
include new construction of highways, roads, streets, or bridges, a
project that increases the capacity of a highway facility to
accommodate that part of traffic having neither an origin nor
destination within the local area, widening of a lane width or
more, or adding turn lanes of more than 1/2 mile in length.
Preservation includes, but is not limited to, 1 or more of the
following:
(i) Maintenance.
(ii) Capital preventive treatments.
(iii) Safety projects.
(iv) Reconstruction.
(v) Resurfacing.
(vi) Restoration.
(vii) Rehabilitation.
(viii) Widening of less than the width of 1 lane.
(ix) Adding auxiliary weaving, climbing, or speed change lanes.
(x) Modernizing intersections.
(xi) Adding auxiliary turning lanes of 1/2 mile or less.
(xii) Installing traffic signs in new locations, installing
signal devices in new locations, and replacing existing signal
devices.
(m) "Maintenance" means routine maintenance or preventive
maintenance, or both. Maintenance does not include capital
preventive treatments, resurfacing, reconstruction, restoration,
rehabilitation, safety projects, widening of less than 1 lane
width, adding auxiliary turn lanes of 1/2 mile or less, adding
auxiliary weaving, climbing, or speed-change lanes, modernizing
intersections, or the upgrading of aggregate surface roads to hard
surface roads. Maintenance of state trunk line highways does not
include streetlighting except for freeway lighting for traffic
safety purposes.
(n) "Routine maintenance" means actions performed on a regular
or controllable basis or in response to uncontrollable events upon
a highway, road, street, or bridge. Routine maintenance includes,
but is not limited to, 1 or more of the following:
(i) Snow and ice removal.
(ii) Pothole patching.
(iii) Unplugging drain facilities.
(iv) Replacing damaged sign and pavement markings.
(v) Replacing damaged guardrails.
(vi) Repairing storm damage.
(vii) Repair or operation of traffic signs and signal systems.
(viii) Emergency environmental cleanup.
(ix) Emergency repairs.
(x) Emergency management of road closures that result from
uncontrollable events.
(xi) Cleaning streets and associated drainage.
(xii) Mowing roadside.
(xiii) Control of roadside brush and vegetation.
(xiv) Cleaning roadside.
(xv) Repairing lighting.
(xvi) Grading.
(o) "Preventive maintenance" means a planned strategy of cost-
effective treatments to an existing roadway system and its
appurtenances that preserve assets by retarding deterioration and
maintaining functional condition without significantly increasing
structural capacity. Preventive maintenance includes, but is not
limited to, 1 or more of the following:
(i) Pavement crack sealing.
(ii) Micro surfacing.
(iii) Chip sealing.
(iv) Concrete joint resealing.
(v) Concrete joint repair.
(vi) Filling shallow pavement cracks.
(vii) Patching concrete.
(viii) Shoulder resurfacing.
(ix) Concrete diamond grinding.
(x) Dowel bar retrofit.
(xi) Bituminous overlays of 1-1/2 inches or less in thickness.
(xii) Restoration of drainage.
(xiii) Bridge crack sealing.
(xiv) Bridge joint repair.
(xv) Bridge seismic retrofit.
(xvi) Bridge scour countermeasures.
(xvii) Bridge painting.
(xviii) Pollution prevention.
(xix) New treatments as they may be developed.
(p) "County road commission" means the board of county road
commissioners elected or appointed pursuant to section 6 of chapter
IV of 1909 PA 283, MCL 224.6, or, in the case of a charter county
with a population of 2,000,000 or more with an elected county
executive that does not have a board of county road commissioners,
the county executive for ministerial functions and the county
commission provided for in section 14(1)(d) of 1966 PA 293, MCL
45.514, for legislative functions.
(q) "Capital preventive treatments" means any preventive
maintenance category project on state trunk line highways that
qualifies under the department's capital preventive maintenance
program.
Sec. 10h. (1) By May 1 of each year, the state transportation
commission shall report to each member of the legislature, the
governor, and the auditor general its recommendations for a
transportation program which the state transportation commission
acts on under section 10e(10). The report shall specify the
following:
(a) The estimated amount of money in the comprehensive
transportation fund to be distributed in the following fiscal year
and the amount of money in the comprehensive transportation fund to
be distributed to each eligible authority, each intercity carrier,
each eligible governmental agency, and the state transportation
department; the estimated amount of money in the state trunk line
fund to be distributed to the state transportation department for
the preservation, as defined in section 10c, of state trunk line
highways; and the estimated amount of money in the state trunk line
fund to be distributed to the state transportation department for
all other purposes in the following fiscal year. The report shall
further subdivide the money to be distributed to each eligible
authority, each intercity carrier, each eligible governmental
agency, the state transportation department from the comprehensive
transportation fund, the state transportation department from the
state trunk line fund for the preservation of state trunk line
highways, and the state transportation department from the state
trunk line fund for all other purposes specifying how much of that
money is proposed to be expended for either capital acquisitions,
including demonstration projects, or for operating expenses,
including demonstration projects.
(b) An account of all expenditures of funds distributed from
the state trunk line fund and the comprehensive transportation fund
to the state transportation department, eligible authorities,
intercity carriers, and eligible governmental agencies, and the
progress made by the state transportation department, eligible
authorities, intercity carriers, and eligible governmental agencies
in carrying out the approved transportation programs in the
preceding fiscal year through the use of those funds. The progress
report shall be made based on information supplied to the state
transportation department on forms authorized by the federal
department of transportation. For those eligible authorities,
intercity carriers, and eligible governmental agencies not
receiving federal funds pursuant to the urban mass transportation
act of 1964, Public Law 88-365, the progress report shall be made
upon forms supplied by the state transportation department. The
progress report shall also contain the whole amount of the expenses
of the state transportation department for the fiscal year.
(c) Each project certified to be eligible for a multiyear
funding commitment.
(d) The status of all multiyear funding commitments.
(e) An account of the state transportation department's
compliance in the preceding year with the requirements of section
11(2) and (3). The report shall also specify the justification for
a waiver of the requirement of section 11(3), if that requirement
was waived.
(2) The financial transactions and accounts related to
distributions made from the comprehensive transportation fund to an
eligible
authority created under the metropolitan transportation
authorities
act of 1967, 1967 PA 204, MCL 124.401 to 124.426, shall
be
audited pursuant to that act the
metropolitan transportation
authorities act of 1967, 1967 PA 204, MCL 124.401 to 124.426, or
the regional transportation authority act, whichever applies. The
cost of the audit shall be paid by the eligible authority. The
financial transactions and accounts related to distributions made
from the fund to an eligible governmental agency, other than a
county, shall be audited in accordance with the uniform budgeting
and accounting act, 1968 PA 2, MCL 141.421 to 141.440a. The
financial transactions and accounts related to distributions made
from the fund to a county which is an eligible governmental agency
shall be audited in accordance with 1919 PA 71, MCL 21.41 to 21.55.
The financial transactions and accounts relative to distributions
made to an intercity carrier shall be audited by an independent
certified public accountant in accordance with instructions
promulgated by the department of treasury. A copy of the complete
audit report and management letter shall be submitted by the
eligible authority, intercity carrier, or eligible governmental
agency to the state transportation department. The department of
treasury shall develop minimum audit standards and requirements.
(3) There is hereby established a task force composed of the
Michigan public transit association, the Michigan motorbus
association, the Michigan rail users and supporters association,
the Michigan railroad association, a representative of a state-
owned or leased short line railroad, and the office of auditor
general or a certified public accountant appointed by the auditor
general, to assist the department in the development of the
progress report requirements outlined in subsection (1)(b).
Sec. 10l. (1) For each 12-month period beginning October 1,
1987, and each 12-month period thereafter, $2,000,000.00 shall be
returned from the distribution under section 10e(4)(a) by each
multicounty eligible authority
created under the metropolitan
transportation
authorities act of 1967, Act No. 204 of the Public
Acts
of 1967, being sections 124.401 to 124.425 of the Michigan
Compiled
Laws, organized or continued
under the regional
transportation authority act in terms of a credit to those cities,
villages,
and townships within each transportation district of the
authority
created under section 16a of Act No. 204 of the Public
Acts
of 1967, being section 124.416a of the Michigan Compiled Laws,
which
receiving credits under this
section or eligible to receive
credits as of October 1, 2001 that apply to the authority for the
credit in accordance with procedures and standards established by
the authority, except as provided by subsections (2) and (3). The
return of money in terms of a credit shall be based upon the
population of each city, village, or township within the authority.
(2) For each 12-month period described in subsection (1), a
city, village, or township described in subsection (1) may apply to
the authority to use its credit for public transportation purposes
within the authority's jurisdiction. However, the money returned in
terms
of a credit to any city, village, or township which that
provides public transportation service for that city, village, or
township shall be used exclusively toward reducing the operating
deficit
of that service. Moreover, any Any
service provided by the
city,
township, or village utilizing the credit received pursuant
to
under this section shall be operated by the authority
returning
the money in terms of a credit on a contractual basis with each
city, village, or township or with a combination of cities,
villages, and townships. If a city, township, or village has not
applied to the authority to utilize its credit pursuant to this
subsection by the last day of the 12-month period, that
municipality's share of the money credited pursuant to subsection
(1) shall be used by the authority for an expenditure within the
county within which the city, village, or township lies.
(3)
A city, village, or township which that has applied for
and received approval from the authority for use of its credit
pursuant to subsection (2) shall have 1 year after the end of the
period in which the application was made to actually expend that
credit. A credit not actually expended by the city, village, or
township by the last day of the year after the end of the period in
which the application was made shall be used by the authority for
an expenditure within the county within which the city, village, or
township lies.
(4) Notwithstanding any other section of this or any other
act, each authority authorized by this section to return money in
terms of a credit shall have the final decision as to what
constitutes a proper expenditure, a public transportation service,
or a public transportation purpose under subsections (2) and (3).
(5) The expenditure of the amounts required to be expended
under subsections (2) and (3) shall not be conditioned on an
expenditure by a county in which the expenditure is required to be
expended.
(6)
The An authority shall retain the ability to coordinate
services between contracting cities, villages, and townships or
groups of cities, villages, or townships.
(7) As used in this section, "operating deficit" means the
operating cost of a public transportation service less the revenues
generated by the service.
Sec. 10n. (1) Funds from the comprehensive transportation fund
may be distributed to a trustee, or to the Michigan municipal bond
authority as created under the shared credit rating act, 1985 PA
227, MCL 141.1051 to 141.1076, that is authorized to receive the
funds under a borrowing resolution adopted by an eligible
authority. The issuance of the notes of an eligible authority in
anticipation of payment of proceeds from the comprehensive
transportation fund shall be authorized by a borrowing resolution
of the eligible authority under the metropolitan transportation
authorities act of 1967, 1967 PA 204, MCL 124.401 to 124.426, or
the regional transportation authority act. The issuance of the
notes under this section is not subject to the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821, and shall be
subject to the prior approval of the state transportation
commission. Failure of the commission to take action within 35 days
after receipt of notification from the eligible authority of intent
to issue the notes, constitutes approval by the state
transportation commission. The eligible authority may only issue
the notes in anticipation of funds to be received during its
current fiscal year at any time before the eligible authority's
receipt of the funds from the comprehensive transportation fund.
The principal amount of notes for which the funds to be received
from the comprehensive transportation fund are pledged shall not
exceed 85% of the amount remaining to be received by the eligible
authority from the comprehensive transportation fund in the current
fiscal year. The pledge of 100% of the funds the eligible authority
expects to receive from the comprehensive transportation fund shall
be secured by a direct transfer of the pledge funds from the
comprehensive transportation fund to the trustee or the Michigan
municipal bond authority that is authorized to receive the funds by
the borrowing resolution adopted by the eligible authority. The
notes of the eligible authority shall not be in any way a debt or a
liability of the state and shall not create or constitute any
indebtedness, liability, or obligations of the state or be or
constitute a pledge of the full faith and credit of the state. Each
note shall contain on its face a statement to the effect that the
eligible authority is obligated to pay the principal of and the
interest on the note only from funds of or due to the eligible
authority and that this state is not obligated to pay that
principal or interest and that neither the faith in credit nor the
taxing power of this state is pledged to the payment of the
principal of or the interest on the note. The notes shall mature
not more than 13 months from the date of issuance, shall bear
interest at a fixed or variable rate or rates of interest per
annum, and, in addition to other security required by this section,
may be secured by letter or line of credit issued by a financial
institution or as provided in the borrowing resolution.
(2) The issuance of notes under this section is subject to the
agency financing reporting act, 2002 PA 470, MCL 129.171 to
129.177.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 5731(request no.
05401'09 *) of the 95th Legislature is enacted into law.