LOCAL GRADE SEPARATION GRANT PGM & FUND S.B. 124 (S-1) & 125 (S-1):
SUMMARY AS PASSED BY THE SENATE
Senate Bill 124 & 125 (Substitute S-1 as passed by the Senate)
Sponsor: Senator Darrin Camilleri
Committee: Transportation and Infrastructure
Date Completed: 8-21-23
INTRODUCTION
The bills would create a local grade separation grant program that would provide cities,
villages, and county road commissions with funding for any stage of a grade separation project
or a project that improves traffic at a rail crossing without a full grade separation. Applicants
would have to provide a 20% match of the project's cost and specified information to the
Michigan Department of Transportation (MDOT) to receive funding. The bills would require
MDOT to develop parameters for prioritizing project applications based on specified criteria,
such as the proximity of a project to emergency planning zones and certain health facilities.
In addition, the bills would create the Local Grade Separation Fund and require MDOT to spend
money for project funding, upon appropriation.
The bills are tie-barred.
PREVIOUS LEGISLATION
(Please note: The information in this summary provides a cursory overview of previous legislation and its progress. It does not provide
a comprehensive account of all previous legislative efforts on the relevant subject matter.)
Senate Bills 124 and 125 are similar to Senate Bills 427 and 425 from the 2021-2022
Legislative Session, respectively. Senate Bills 427 and 425 passed the Senate but received
no further action in the House.
FISCAL IMPACT
Senate Bill 124 (S-1) would have a minimal negative fiscal impact on the State in the amount
equal to the cost of creating the parameters for approval of funding applications and no fiscal
impact on local units of government.
Senate Bill 125 (S-1) would have a minimal negative fiscal impact on the State in the amount
equal to the cost of creating the application form and the additional work needed to operate
the form and reporting requirements. The bill would have a minimal negative fiscal impact
on local units of government equal to the cost of applying for these grants. Costs to the State
and revenue to the local units of government will depend on appropriations.
Proposed MCL 247.661i (S.B. 125) Legislative Analyst: Tyler P. VanHuyse
Proposed MCL 247.661j (S.B. 124) Fiscal Analyst: Bobby Canell
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CONTENT
Senate Bill 125 (S-1) would amend the Michigan Transportation Fund law to do the
following:
-- Require MDOT to establish a local grade separation grant program and to provide
grants to cities, villages, and county road commissions.
-- Require MDOT to establish a review process for considering funding applications
and to notify applicants within 120 days of the application's approval or denial.
-- Require MDOT, before releasing local grade separation funds, to enter into an
agreement with the recipient, and specify the provisions that would have to be
included in the agreement.
-- Require MDOT to issue a report to the Legislature pertaining to the use of funds
from the grant program.
-- Create the Local Grade Separation Fund to provide funding under the bill.
Senate Bill 124 (S-1) would amend the Michigan Transportation Fund law to develop
parameters for prioritizing the approval of funding applications for railroad crossing
projects awarded under the proposed grant program.
Senate Bill 125 (S-1)
Local Grade Separation Program
Specifically, the bill would require MDOT to create and operate a local grade separation grant
program for the separation of motor vehicle traffic and railroad traffic in the State. The
Department would have to provide grants to cities, villages, and county road commissions in
the State. ("Grade separation" would mean an intersection of a railroad and roadway at
different levels with the railroad either above or below the roadway.)
The bill would require a funding application for the grant program to be made on a form
approved by MDOT and to contain the information required under Section 11j of the law,
which Senate Bill 124 (S-1) would add. A funding application could be made at any time as
determined by MDOT.
Application Review Process; Agreement
Under the bill, MDOT would have to establish a review process for considering funding
applications that included the parameters for prioritizing the approval of funding applications
as described in Section 11j. Within 180 days of receiving a funding application, MDOT would
have to notify the applicant in writing whether the application was approved or rejected.
Before releasing grant funds, MDOT would have to enter into an agreement with the funding
recipient. Awarded grant funds could be used by the recipient for any stage of design and
construction related to the grade separation project or a project that improved traffic at a rail
crossing without a full grade separation, including construction of a rail siding or spur. The
written agreement between MDOT and the recipient would have to provide for a description
of the grade separation project or a project that improved traffic as described above and a
local, private, or Federal match of at least 20% of the cost of the project.
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Reporting Requirements
Under the bill, for each year in which MDOT received funding applications, it would have to
report by December 1 to the standing committees of the Senate and House of Representatives
with primary jurisdiction over issues pertaining to transportation and to the Senate and House
Appropriations Committees on the Local Grade Separation Funds' utilization from the grant
program. The report would have to include all the following:
-- The number of funding application received.
-- The name of each city, village, or county road commission that submitted a funding
application, and whether each funding application was approved or denied.
-- The amount of local match for each approved funding application.
Local Grade Separation Fund
The bill would create the Local Grade Separation Fund within the State Treasury. The State
Treasurer could receive money or other assets from any source for deposit into the Fund. The
Treasurer would have to direct the investment of the Fund and credit to the Fund interest and
earnings from Fund investments. Money in the Fund at the close of the fiscal year would
remain in the Fund and would not lapse into the General Fund.
The Michigan Department of Transportation would have to spend money from the Local Grade
Separation Fund, on appropriation, only to fund the grant program.
Senate Bill 124 (S-1)
Under the bill, MDOT would have to develop parameters for prioritizing the approval of funding
applications for railroad crossing projects awarded under the proposed grant program. The
parameters would have to give priority to projects for railroad crossing that met one or more
of the following conditions:
-- Were within five miles of a railyard.
-- Were within five miles of a manufacturing facility.
-- Were within five miles of a level I to level IV trauma center, adult assisted-living facility,
school, or courthouse.
-- Any other condition that MDOT considered relevant.
The bill specifies that MDOT would have to give higher priority to railroad crossing projects
that met a higher number of the conditions described above than competing projects.
(According to the American Trauma Society, there are five levels of trauma centers. Level I
trauma centers are comprehensive trauma centers capable of providing total care of all
aspects of an injury. Level IV centers can provide advanced trauma life support prior to
transfer of patients. Level V centers generally provide initial evaluation and diagnostic tests
before transfer to a higher level of care.)
Before awarding grants, MDOT would have to establish the parameters on its website.
SAS\S2324\s124sc
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official
statement of legislative intent.
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Statutes affected:
Substitute (S-1): 247.651, 247.675
Senate Introduced Bill: 247.651, 247.675
As Passed by the Senate: 247.651, 247.675