Bill Text: MI HB5770 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Transportation; funds; disposition of fuel assessment; provide for. Amends sec. 10 of 1951 PA 51 (MCL 247.660). TIE BAR WITH: HB 5768'10, HB 5769'10

Spectrum: Slight Partisan Bill (Democrat 6-2)

Status: (Introduced - Dead) 2010-02-02 - Printed Bill Filed 01/28/2010 [HB5770 Detail]

Download: Michigan-2009-HB5770-Introduced.html

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HOUSE BILL No. 5770

 

January 27, 2010, Introduced by Reps. Ball, Byrnes, Nerat, Bauer, Lori, Gonzales, Donigan and Lindberg 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. Appropriations for the necessary expenses incurred in

 

the administration and enforcement of any increase in taxes on or

 

after January 1, 2010 assessed under the motor fuel tax act, 2000

 

PA 403, MCL 207.1001 to 207.1170, or the motor carrier fuel tax

 

act, 1980 PA 119, MCL 207.211 to 207.234, shall not be made from

 

revenues collected from any increase in taxes on or after January

 

1, 2010 under the motor fuel tax act, 2000 PA 403, MCL 207.1001 to

 

207.1170, or the motor carrier fuel tax act, 1980 PA 119, MCL

 

207.211 to 207.234, but may be collected from other revenues

 

collected under the motor fuel tax act, 2000 PA 403, MCL 207.1001

 

to 207.1170, or the motor carrier fuel tax act, 1980 PA 119, MCL

 

207.211 to 207.234. 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 less than $3,000,000.00 each year to the local bridge

 

fund established in subsection (5) 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).

 

     (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) (j).

 

     (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.

 

     (e) Subject to the requirements of this subdivision beginning

 

March 1, 2010, all of the revenue from rate increases on and after

 

March 1, 2010 in the motor fuel tax act, 2000 PA 403, MCL 207.1001

 

to 207.1170, and the motor carrier fuel tax act, 1980 PA 119, MCL

 

207.211 to 207.234, shall be deposited in the transportation

 

investment fund. The transportation investment fund shall deposit

 

10% of the revenue into the comprehensive transportation fund

 

created in section 10b and, of the remaining 90% of the revenue,

 

distribution shall be 39.1% to the state trunk line fund, 39.1% to

 

the county road commissions of this state, and 21.8% to the cities

 

and villages of this state. The state transportation department

 

shall compile a complete accounting with a record of all

 

disbursements from the fund for each fiscal year and shall submit a

 

written document with a record of disbursements to the legislature

 

no later than 30 days after the end of each fiscal year. The state

 

transportation department shall distribute information to any

 

entity receiving transportation investment fund dollars through the

 

state trunk line fund or the comprehensive transportation fund and

 

to each county road commission, city, or village that receives

 

transportation investment fund dollars detailing the exact dollar

 

amount each entity receives from the transportation investment

 

fund. As a condition of receiving distributions from the

 

transportation investment fund, any entity that receives

 

transportation investment fund dollars shall provide for public

 

access a complete accounting including a record of all

 

transportation investment fund dollars received and all

 

expenditures made of transportation investment fund dollars during

 

the fiscal year. The accounting shall be provided and distributed

 

in a manner that assures open public access to the accounting.

 

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

 

service costs on state of Michigan projects.

 

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

 

comprehensive transportation fund for the purposes described in

 

section 10e.

 

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

 

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

 

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

 

road commissions.

 

     (i) (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.

 

     (j) (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.

 

     (k) (j) The balance of the Michigan transportation fund as

 

follows, after deduction of the amounts appropriated in

 

subdivisions (a) through (i) (j) 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,

 

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)

 

(1)(g) 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.

 

     (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.

 

     (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.

 

     (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.

 

     (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.

 

     (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).

 

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

 

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

 

to subsection (8).

 

     (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). 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.

 

     (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.

 

     (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.

 

     (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) 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.

 

     (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.

 

     (15) The fuel tax restructuring commission is created in the

 

department. The commission shall undertake a study within 3 years

 

of the effective date of the amendatory act that added this

 

subsection to determine the long-term alternative tax structure for

 

motor fuel taxes. The study shall include an examination of

 

feasible methods of alternative technology that may be applied to

 

restructuring. The commission shall submit a final report of the

 

results of the study to the legislature on or before January 1,

 

2015. The commission shall have 5 members. One member shall be

 

appointed by the speaker of the house of representatives, and 1

 

member shall be appointed by the minority leader of the house of

 

representatives. One member shall be appointed by the senate

 

majority leader, and 1 member shall be appointed by the senate

 

minority leader. One member shall be appointed by the governor.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5768(request no.

 

05204'09).

 

     (b) Senate Bill No.____ or House Bill No. 5769(request no.

 

05205'09).