Bill Text: MI SB0921 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Transportation; funds; conditions for funding; change, and create sunset for meetings of the complete streets advisory council if the state transportation commission adopts a complete streets policy. Amends secs. 1c, 10a, 10p & 13 of 1951 PA 51 (MCL 247.651c et seq.) & repeals sec. 10a of 1951 PA 51 (MCL 247.660a). TIE BAR WITH: HB 5303'12
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-26 - Referred To Committee On Transportation [SB0921 Detail]
Download: Michigan-2011-SB0921-Introduced.html
SENATE BILL No. 921
January 26, 2012, Introduced by Senator JANSEN 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 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 1c, 10a, 10p, and 13 (MCL 247.651c, 247.660a,
247.660p, and 247.663), section 1c as amended by 2010 PA 28,
section 10a as amended by 1992 PA 137, section 10p as added by 2010
PA 135, and section 13 as amended by 2010 PA 261; and to repeal
acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
1c. (1) The state transportation department shall
bear
the cost of opening, widening, and improving, including
construction and reconstruction, of all state trunk line highways,
in accordance with standards and specifications of the department.
,
all state trunk line highways, subject to all of the following
provisions:
(a)
Incorporated cities and villages shall participate with
the
department in the cost of opening, widening, and improving,
including
construction and reconstruction of state trunk line
highways
within cities and villages to which may be added, subject
to
the approval of the state transportation commission, streets
that
are connecting links of trunk line highways or streets that
are
made connecting links of trunk line highways, according to the
following
schedule subject to the definition of population as
provided
in section 13:
(i) In cities and villages having a population of
50,000 or
more,
12.5% of the cost shall be borne by the city or village, and
87.5%
by the state transportation department.
(ii) In cities and villages having a population of
40,000 or
more
and less than 50,000, 11.25% of the cost shall be borne by the
city
or village, and 88.75% by the state transportation department.
(iii) In cities and villages having a population of
25,000 or
more
and less than 40,000, 8.75% of the cost shall be borne by the
city
or village, and 91.25% by the state transportation department
except
in the case of projects related to international border
crossing,
in which case the department shall bear the entire
project
cost.
(iv) In cities and villages having a population of less
than
25,000,
the state transportation department shall bear the entire
cost.
(b)
As used in this act, "opening, widening, and improving,
including
construction and reconstruction, of state trunk line
highways"
includes, but is not limited to, the cost of right of
way;
the cost of removal and replacement of sidewalks, street
lighting,
curbing, where removal and replacement is made necessary
by
construction or reconstruction of a trunk line highway; and the
cost
of bridges and structures, including that part of the cost of
grade
separation structures not paid by the railroad companies.
(2) (c)
In a city or village, the width of
a state trunk line
highway shall be the width required to serve anticipated future
traffic needs for a 20-year period as determined by a department
transportation
survey, which width, except as prescribed by this
subdivision,
but shall not be less than the currently accepted
standards prescribed for a 4-lane highway; the width as may be
built on the same trunk line route immediately beyond and adjacent
to either legal boundary of the city or village; or on trunk lines
eligible for federal highway funds, a width as may be prescribed by
the federal government, whichever width is greater. However, the
department and the governing body of a city or village by mutual
agreement may determine that the width of a state trunk line
highway shall be less than the width otherwise prescribed by this
subdivision.subsection.
(3) (d)
If a city or village shall
desire chooses to widen a
state trunk line highway for local purposes beyond the width
prescribed
in subdivision (c), subsection
(2), the entire cost of
the
extra width, less the federal highway funds which that may
be
allocated to the portion of the project by the department, shall be
borne by the city or village.
(4) (e)
The state transportation commission
and the boards of
county road commissioners may enter into agreements with townships
or private persons for the improvement or widening of state trunk
line highways or county roads. The state transportation commission
and the boards of county road commissioners may require full or
partial participation in the cost of the improvement or widening by
the requesting party as considered appropriate.
(5) As used in this section, "opening, widening, and
improving, including construction and reconstruction, of all state
trunk line highways" includes, but is not limited to, the cost of
right of way; the cost of removal and replacement of sidewalks,
street lighting, and curbing, where removal and replacement are
made necessary by construction or reconstruction of a trunk line
highway; and the cost of bridges and structures, including that
part of the cost of grade separation structures not paid by the
railroad companies.
Sec.
10a. (1) Annually the state transportation The department
shall annually determine the miles of state trunk line highways,
county primary and local roads, and city and village major and
local streets transferred to and from state, county, city, or
village jurisdiction during the preceding period of July 1 to June
30. In each year after that determination, the transferred mileage
shall be accumulated and added to the mileage transferred in each
subsequent July 1 to June 30 period.
(2) The current average revenue worth per mile of a county
primary road and a county local road shall be determined annually
by dividing the total county primary and local road mileages
respectively as of the first day of the preceding July 1 to June 30
period into the total amount of Michigan transportation funds
returned to counties pursuant to this act for use on county primary
and local roads respectively during that period, except money
returned to counties pursuant to section 12(2) and (3).
(3) The total amount of money to be transferred from and to
the
state trunk line fund, the counties, cities, and villages shall
be determined annually by multiplying the current revenue worth per
mile of a county primary road and a county local road respectively
by the number of accumulated miles in each category transferred
from and to state, county, city, or village jurisdiction. If the
transferred
facility road becomes classified as part of the local
road or street system of the receiving jurisdiction, the transfer
of money shall be calculated on the basis of the revenue worth per
mile of a county local road. In any other category of
jurisdictional transfer, the transfer of money shall be calculated
on the basis of the revenue worth per mile of a county primary
road.
(4) For jurisdictional transfers made from the state to a
county, city, or village after July 1, 1992, the amount in the
state trunk line fund to be transferred shall be transferred to the
county, city, or village receiving jurisdiction. If the transferred
highway is then classified as part of the local road or street
system of the receiving jurisdiction, the transfer of money to the
receiving jurisdiction shall be calculated on the basis of the
revenue worth per mile of a county local road as determined in
subsection (2). If the transferred highway is then classified as
part of the primary road or major street system of the receiving
jurisdiction, the transfer of money to the receiving jurisdiction
shall be calculated on the basis of the revenue worth per mile of a
county primary road as determined in subsection (2). This
subsection
and subsection (5) shall do
not be construed to effect
affect
contracts entered into before or after the
effective date of
this
subsection July 15, 1992 pursuant to Act No. 166 of the Public
Acts
of 1965, being sections 408.551 to 408.558 of the Michigan
Compiled
Laws, 1965 PA 166, MCL
408.551 to 408.558, for the
maintenance of a transferred highway.
(5) In cities and villages with a population of 25,000 or
more, trunk line mileage that is transferred to local jurisdiction
after July 1, 1992 and is then classified as a major street shall
be certified at twice its measured length.
(6) The transfer of funds under this section shall be included
each year in the October appropriation of the Michigan
transportation fund.
(7) This section is repealed effective September 30, 2019.
Sec. 10p. (1) As used in this section:
(a) "Complete streets" means roadways planned, designed, and
constructed to provide appropriate access to all legal users in a
manner that promotes safe and efficient movement of people and
goods whether by car, truck, transit, assistive device, foot, or
bicycle.
(b) "Complete streets policy" means a document that provides
guidance for the planning, design, and construction of roadways or
an interconnected network of transportation facilities being
constructed or reconstructed and designated for a transportation
purpose that promotes complete streets and meets all of the
following requirements:
(i) Is sensitive to the local context and recognizes that needs
vary according to urban, suburban, and rural settings.
(ii) Considers the functional class of the roadway and project
costs and allows for appropriate exemptions.
(iii) Considers the varying mobility needs of all legal users of
the roadway, of all ages and abilities.
(c) "Department" means the state transportation department.
(d) "Local road agency" means that term as defined in section
9a.
(e) "Municipality" means a city, village, or township.
(2) The state transportation commission shall do both of the
following
by not later than 2 years after the effective date of the
amendatory
act that added this section:August
2, 2012:
(a) Adopt a complete streets policy for the department.
(b) Develop a model complete streets policy or policies to be
made available for use by municipalities and counties.
(3) Before a municipality approves any project in its
multiyear capital program that affects a roadway or transportation
facility
under the jurisdiction of the state transportation
department
or within or under the jurisdiction of a county or
another municipality, it shall consult with the affected agency and
agree on how to address the respective complete streets policies,
subject to each agency's powers and duties. Before the department
submits its multiyear capital plan to the state transportation
commission or a county road agency approves its multiyear capital
plan, for any project that affects a roadway or transportation
facility
within or under the jurisdiction of a municipality, the
department or county road agency shall consult with the
municipality and agree on how to address the respective complete
streets policies, subject to each agency's powers and duties.
Failure to come to an agreement shall not prevent the department
from submitting its multiyear capital plan to the state
transportation commission. This subsection does not apply under any
of the following circumstances:
(a) If neither the agency proposing the project nor the
affected agency has a complete streets policy.
(b) If the project was included in a municipality's multiyear
capital program or the department's or a county's multiyear capital
plan on July 1, 2010.
(4) The department may provide assistance to and coordinate
with local agencies in developing and implementing complete streets
policies. The department shall share expertise in nonmotorized and
multimodal transportation planning in the development of trunk line
projects within municipal boundaries.
(5) The department, local road agencies, and municipalities
may enter into agreements with each other providing for maintenance
of transportation facilities constructed to implement a complete
streets policy.
(6) A complete streets advisory council is created within the
department. The advisory council shall consist of the following
members appointed by the governor:
(a)
The director of the state transportation department or his
or her designee.
(b) The director of the department of community health or his
or her designee.
(c) The director of the department of state police or his or
her designee.
(d) One individual representing the state transportation
commission.
(e) One individual representing environmental organizations.
(f) One individual representing planning organizations.
(g) One individual representing organizations of disabled
persons.
(h) One individual representing road commission organizations.
(i) One individual representing public transit users
organizations.
(j) One licensed professional engineer or traffic engineer.
(k) One individual representing the Michigan municipal league.
(l) One individual representing the AARP.
(m) One individual representing the league of Michigan
bicyclists.
(n) One individual representing a pedestrian organization.
(o) One individual representing the Michigan public transit
association.
(p) One individual representing the Michigan townships
association.
(q) As nonvoting members, the director of the department of
natural
resources and environment or his or her designee, the
executive director of the Michigan state housing development
authority or his or her designee, and the heads of such other state
departments and agencies, as the governor considers appropriate, or
their designees.
(7) The members first appointed to the advisory council shall
be
appointed within 60 days after the effective date of this
section.
August 2, 2010. Members of the advisory council shall
serve for terms of 3 years or until a successor is appointed,
whichever is later, except that of the members first appointed 3
shall serve for 1 year, 3 shall serve for 2 years, and 3 shall
serve for 3 years. If a vacancy occurs on the advisory council, the
governor shall make an appointment for the unexpired term in the
same manner as the original appointment. The governor may remove a
member of the advisory council for incompetency, dereliction of
duty, malfeasance, misfeasance, or nonfeasance in office, or any
other good cause.
(8) The first meeting of the advisory council shall be called
by
the director of the state transportation department. At the
first meeting, the advisory council shall elect from among its
members a chairperson, vice-chairperson, secretary, and other
officers as it considers necessary or appropriate. After the first
meeting
and before 2018, through
December 31, 2017, the advisory
council shall meet at least quarterly, or more frequently at the
call of the chairperson or if requested by 3 or more members. A
majority of the members of the advisory council constitute a quorum
for the transaction of business at a meeting of the advisory
council. The affirmative vote of a majority of the members are
required for official action of the advisory council.
(9) The business that the advisory council may perform shall
be
conducted at a public meeting of the advisory council held in
compliance with the open meetings act, 1976 PA 267, MCL 15.261 to
15.275. A writing prepared, owned, used, in the possession of, or
retained by the advisory council in the performance of an official
function is subject to the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(10) Members of the advisory council shall serve without
compensation. However, members of the advisory council may be
reimbursed for their actual and necessary expenses incurred in the
performance
of their official duties. as members of the advisory
council.
(11) The advisory council shall do all of the following:
(a) Provide education and advice to the state transportation
commission, county road commissions, municipalities, interest
groups, and the public on the development, implementation, and
coordination of complete streets policies.
(b) By December 30, 2011, and each calendar year thereafter,
report to the governor, the state transportation commission, and
the legislature on the status of complete streets policies in this
state. The report shall contain a summary of the advisory council's
proceedings, a statement of instances in which the department and a
municipality were unable to agree under subsection (3) on a
department project affecting a roadway or transportation facility
within
or under the jurisdiction of the
municipality, and any other
necessary or useful information and any additional information that
may be requested by the governor.
(c) Advise the state transportation commission on the adoption
of model policies under subsection (2).
(12) If the state transportation commission adopts a complete
streets policy as required under subsection (2), the advisory
council shall conclude its duties under subsection (11) not later
than December 31, 2012.
Sec.
13. (1) The Except as otherwise
provided in subsection
(13), the amount distributed to cities and villages shall be
returned to the treasurers of the cities and villages in the
manner, for the purposes, and under the terms and conditions
specified in this section. As used in this section, "population"
means the population according to the most recent statewide federal
census as certified at the beginning of the state fiscal year,
except that, if a municipality has been newly incorporated since
completion of the census, the population of the municipality for
purposes of the distribution of funds before completion of the next
census shall be the population as determined by special federal
census, if there is a special federal census, and if not, by the
population as determined by the official census in connection with
the incorporation, if there is such a census and, if not, by a
special state census to be taken at the expense of the municipality
by the secretary of state pursuant to section 6 of the home rule
city act, 1909 PA 279, MCL 117.6. The amount received by the newly
incorporated municipality shall be in place of any other direct
distribution of funds from the Michigan transportation fund. The
population of the newly incorporated municipality as determined
under this section shall be added to the total population of all
incorporated cities and villages in the state in computing the
amounts to be returned under this section to each municipality in
the state. Major street mileage, local street mileage, and
equivalent major mileage, if applicable, shall be determined by the
state
transportation department before
the next month for which
distribution is made following the effective date of incorporation
of a newly incorporated municipality.
(2)
From Until September 30,
2013, from the amount available
for distribution to cities and villages during each December, an
amount equal to 0.7% of the total amount returned to all cities and
villages under subsections (3) and (4) during the previous calendar
year shall be withheld. The amount withheld shall be used to
partially
reimburse those cities and villages located in those
counties that are eligible for snow removal funds pursuant to
section 12a and that have costs for winter maintenance on major and
local streets that are greater than the statewide average. The
distributions under this subsection shall be made annually during
February and shall be calculated separately for the major and local
street systems but may be paid in a combined warrant. The
distribution under this subsection to a city or village shall be
equal to 1/2 of its winter maintenance expenditures after deducting
the product of its total earnings under subsections (3) and (4)
multiplied by 2 times the average municipal winter maintenance
factor. Winter maintenance expenditures shall be determined from
the street financial reports for the most current fiscal years
ending before July 1. A city or village that does not submit a
street financial report for the fiscal year ending before July 1 by
the subsequent December 31 shall be ineligible for the winter
maintenance payment that is to be based on that street financial
report. The average municipal winter maintenance factor shall be
determined
annually by the state transportation department by
dividing the total expenditures of all cities and villages on
winter maintenance of streets and highways by the total amount
earned by all cities and villages under subsections (3) and (4)
during the 12 months. If the sum of the distributions to be made
under this subsection exceeds the amount withheld, the
distributions to each eligible city and village shall be reduced
proportionately. If the sum is less than the amount withheld, the
balance shall be added to the amount available for distribution
under subsections (3) and (4) during the next month. The
distributions under this subsection shall be for use on the major
and local street systems respectively and shall be subject to the
same provisions as funds returned under subsections (3) and (4).
(3) Seventy-five percent of the remaining amount to be
returned to the cities and villages from the Michigan
transportation fund, after deducting the amounts withheld pursuant
to subsection (2), shall be returned 60% in the same proportion
that the population of each bears to the total population of all
cities and villages, and 40% in the same proportion that the
equivalent major mileage in each bears to the total equivalent
major mileage in all cities and villages. As used in this section,
"equivalent major mileage" means the sum of 2 times the state trunk
line
mileage certified by the state transportation department as of
March 31 of each year, as being within the boundaries of each city
and village having a population of 25,000 or more, plus the major
street mileage in each city and village, multiplied by the
following factor:
1.0 for cities and villages of 2,000 or less population;
1.1 for cities and villages from 2,001 to 10,000 population;
1.2 for cities and villages from 10,001 to 20,000 population;
1.3 for cities and villages from 20,001 to 30,000 population;
1.4 for cities and villages from 30,001 to 40,000 population;
1.5 for cities and villages from 40,001 to 50,000 population;
1.6 for cities and villages from 50,001 to 65,000 population;
1.7 for cities and villages from 65,001 to 80,000 population;
1.8 for cities and villages from 80,001 to 95,000 population;
1.9 for cities and villages from 95,001 to 160,000 population;
2.0 for cities and villages from 160,001 to 320,000
population;
and for cities over 320,000 population, by a factor of 2.1
increased successively by 0.1 for each 160,000 population increment
over 320,000. The amount returned under this subsection shall be
used by each city and village for the following purposes in the
following order of priority:
(a) For the payment of contributions required to be made by a
city or village under the provisions of contracts previously
entered
into under 1941 PA 205, MCL 252.51 to 252.64, which if
those
contributions have been previously
been pledged for the
payment of the principal and interest on bonds issued under that
act; or for the payment of the principal and interest upon bonds
issued
by a city or village pursuant to under 1952 PA 175, MCL
247.701 to 247.707.
(b) Payment of obligations of the city or village on highway
projects
undertaken by the city or village jointly with the state
transportation
department.
(c) For the payment of principal and interest upon loans
received
pursuant to under section 11(5), to the extent other funds
have
not been made available for that payment.
(d) For the preservation, construction, acquisition, and
extension
of the major street system as defined by described in
this act including the acquisition of a necessary right of way for
the system, work incidental to the system, and an appurtenant
roadside park or motor parkway, of the city or village and for the
payment of the principal and interest on that portion of the city's
or village's general obligation bonds which are attributable to the
construction or reconstruction of the city's or village's major
street system. Not more than 5% per year of the funds returned to a
city or village by this subsection shall be expended for the
preservation or acquisition of appurtenant roadside parks and motor
parkways. Surplus funds may be expended for the development,
construction, or repair of off-street parking facilities, and the
construction or repair of street lighting, and transfer to the
local street system under subsection (6).
(e) For capital outlay projects for equipment and buildings,
contributions pledged for the payment of loans and for the payment
of contractual debt service requirements for the payment of bonds
for the purpose of providing funds for capital outlay projects for
equipment and buildings necessary to the development and
maintenance of the road system so long as amounts allocated under
this subsection are used for transportation purposes.
(4) The remaining amount to be returned to incorporated cities
and villages from the Michigan transportation fund shall be
expended in each city or village for the preservation,
construction, acquisition, and extension of the local street system
of
the city or village, as defined by described in this act,
including the acquisition of a necessary right of way for the
system, work incidental to the system, and subject to subsection
(5), for the payment of the principal and interest on that portion
of
the city's or village's general obligation bonds which that are
attributable to the construction or reconstruction of the city's or
village's local street system. The amount returned under this
subsection shall be returned to the cities and villages 60% in the
same proportion that the population of each bears to the total
population of all incorporated cities and villages in the state,
and 40% in the same proportion that the total mileage of the local
street system of each bears to the total mileage in the local
street systems of all cities and villages of the state. The payment
of the principal and interest upon bonds issued by a city or
village pursuant to 1952 PA 175, MCL 247.701 to 247.707, and after
that payment, the payment of debt service on loans received under
section 11(5), shall have priority in the expenditure of money
returned under this subsection.
(5) Money distributed to each city and village for the
maintenance and preservation of its local street system under this
act represents the total responsibility of the state for local
street system support. Funds distributed from the Michigan
transportation fund shall not be expended for construction purposes
on city and village local streets except to the extent matched from
local revenues including other money returned to a city or village
by the state under the state constitution of 1963 and statutes of
the state, from funds that can be raised by taxation in cities and
villages for street purposes within the limitations of the state
constitution of 1963 and statutes of the state, from special
assessments, or from any other source.
(6) Money returned under this section to a city or village
shall be expended on the major and local street systems of that
city or village. However, the first priority shall be the major
street system. Money returned for expenditure on the major street
system shall be expended in the priority order provided in
subsection (3) except that surplus funds may be transferred for
preservation of the local street system. Major street funds
transferred for use on the local street system shall not be used
for
construction but may be used for preservation. as defined in
section
10c. A city or village shall not
transfer more than 50% of
its annual major street funding for the local street system unless
it has adopted and is following an asset management process for its
major and local street systems and adopts a resolution with a copy
to the department setting forth all of the following:
(a) A list of the major streets in that city or village.
(b) A statement that the city or village is adequately
maintaining its major streets.
(c) The dollar amount of the transfer.
(d) The local streets to be funded with the transfer.
(e) A statement that the city or village is following an asset
management process for its major and local street systems.
(7) A city or village that has not adopted an asset management
plan shall obtain the concurrence of the department to transfer
more than 50% of its major street funding to its local street
system. The department may provide for pilot projects that would
allow a city or village that has adopted an asset management plan
under subsection (6) to combine their local and major street funds
into 1 street fund and to submit a single report to the department
on the expenditure of funds on the local and major street systems.
(8) Not more than 10% per year of all of the funds returned to
a city or village from any source for the purposes of this section
may be expended for administrative expenses. As used in this
subsection, "administrative expenses" means those expenses that are
not assigned including, but not limited to, specific road
construction or maintenance projects and are often referred to as
general
or supportive services. service
expenses. Administrative
expenses shall not include net equipment expense, net capital
outlay, debt service principal and interest, and payments to other
state or local offices that are assigned, but not limited to,
specific road construction projects or maintenance activities. A
city
or village which in a year that
expends more than 10% for
administrative
expenses shall be in 1
year is subject to section
14(5).
(9) In each city and village to which funds are returned under
this section, the responsibility for street preservation and the
development, construction, or repair of off-street parking
facilities and construction or repair of street lighting shall be
coordinated by a single administrator to be designated by the
governing
body who shall be is responsible for and shall represent
the
municipality in transactions with the state transportation
department pursuant to this act.
(10) Cities and villages may provide for consolidated street
administration. A city or a village may enter into an agreement
with other cities or villages, the county road commission, or with
the state transportation commission for the performance of street
or highway work on a road or street within the limits of the city
or village or adjacent to the city or village. The agreement may
provide for the performance by any of the contracting parties of
the work contemplated by the contracts including services and
acquisition of rights of way, by purchase or condemnation by any of
the contracting parties in its own name. The agreement may provide
for joint participation in the costs if appropriate.
(11) Interest earned on funds returned to a city or a village
for purposes provided in this section shall be credited to the
appropriate street fund.
(12) In addition to the financial compliance audits required
by law, the department of treasury shall conduct performance audits
and make investigations of the disposition of all state funds
received by cities and villages for transportation purposes to
determine compliance with the terms and conditions of this act.
Performance audits shall be conducted according to government
auditing standards issued by the United States general accounting
office. The department of treasury shall provide notice to cities
and villages of the standards to be used for audits under this
subsection prior to the fiscal year in which the audit is
conducted. The department shall notify cities and villages of any
subsequent changes to the standards. Cities and villages shall make
the
pertinent records available to the
department of treasury the
pertinent
records for the audit.
(13) Beginning on January 1, 2015, the amount distributed from
the Michigan transportation fund to a city or village receiving
less than $50,000.00 from the Michigan transportation fund in
fiscal year 2012 shall be returned to the treasurer of the county
in which the city or village is located, for the purposes specified
in this section. This subsection does not apply to a city or
village described in section 10c(s)(iii) or (v).
Enacting section 1. This amendatory act does not take effect
unless House Bill No. 5303
of the 96th Legislature is enacted into law.