SENATE BILL NO. 699
February 01, 2024, Introduced by Senators HUIZENGA, DAMOOSE, BELLINO, WEBBER,
HAUCK, HOITENGA and DALEY and referred to the Committee on Appropriations.
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
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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; to investigate and
study the tolling of roads, streets, highways, or bridges; and to
repeal acts and parts of acts,"
by amending sections 10 and 11 (MCL 247.660 and 247.661), section
10 as amended by 2022 PA 50 and section 11 as amended by 2015 PA
175.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 10. (1) A fund to be known as the Michigan transportation
2 fund is established in the state treasury as a separate fund. The
3 state treasurer may receive money or other assets from any source
4 for deposit into the fund. The state treasurer shall direct the
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1 investment of the fund. The state treasurer shall credit to the
2 fund interest and earnings from fund investments. Except as
3 otherwise provided in this section, the legislature shall
4 appropriate money for the necessary expenses incurred in the
5 administration and enforcement of the motor fuel tax act, 2000 PA
6 403, MCL 207.1001 to 207.1170, the motor carrier act, 1933 PA 254,
7 MCL 475.1 to 479.42, and sections 801 to 810 of the Michigan
8 vehicle code, 1949 PA 300, MCL 257.801 to 257.810. Money
9 appropriated for necessary expenses must be based upon established
10 cost allocation methodology that reflects actual costs.
11 Appropriations for the necessary expenses incurred by the
12 department of state in administration and enforcement of sections
13 801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL 257.801
14 to 257.810, must be made from the Michigan transportation fund and
15 from money in the transportation administration collection fund
16 created in section 810b of the Michigan vehicle code, 1949 PA 300,
17 MCL 257.810b. Appropriations from the Michigan transportation fund
18 for the necessary expenses incurred by the department of state in
19 administration and enforcement of sections 801 to 810 of the
20 Michigan vehicle code, 1949 PA 300, MCL 257.801 to 257.810, must
21 not exceed $20,000,000.00 per state fiscal year. Except as provided
22 in section 51d of the income tax act of 1967, 1967 PA 281, MCL
23 206.51d, all money in the Michigan transportation fund is
24 apportioned and appropriated in the following manner:
25 (a) Not more than $3,000,000.00 as may be annually
26 appropriated each fiscal year to the state trunk line fund for
27 subsequent deposit in the rail grade crossing account.
28 (b) Not more than $3,000,000.00 as may be annually
29 appropriated each fiscal year to the state trunk line fund for
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1 subsequent deposit in the grade crossing surface account.
2 (c) Not more than $3,000,000.00 each year to the local bridge
3 fund established in subsection (4) for the purpose of payment of
4 the principal, interest, and redemption premium on any notes or
5 bonds issued by the state transportation commission under former
6 section 11b or subsection (9).
7 (d) Except as otherwise provided in this subdivision and
8 subject to section 11h, $2,000,000.00 each year of the revenue from
9 3 cents of the tax levied under section 8(1)(a) of the motor fuel
10 tax act, 2000 PA 403, MCL 207.1008, to the local agency wetland
11 mitigation board fund created in section 11h.
12 (e) Except as otherwise provided in this subdivision,
13 $5,000,000.00 each year of the revenue from 3 cents of the tax
14 levied under section 8(1)(a) of the motor fuel tax act, 2000 PA
15 403, MCL 207.1008, to the movable bridge fund created in section
16 11g, with the remainder to the state trunk line fund, county road
17 commissions, and cities and villages in the percentages provided in
18 subdivision (l). (k). The department shall annually adjust the
19 amount allocated under this subdivision by an amount equal to the
20 annual increase in the Detroit Consumer Price Index for the
21 preceding year.
22 (f) One-half of the revenue from 1 cent of the tax levied
23 under section 8(1)(a) of the motor fuel tax act, 2000 PA 403, MCL
24 207.1008, to the state trunk line fund for the repair of state
25 bridges under section 11, and 1/2 of the revenue from 1 cent of the
26 tax levied under section 8(1)(a) of the motor fuel tax act, 2000 PA
27 403, MCL 207.1008, to the local bridge fund created in subsection
28 (4) for distribution only to cities, villages, and county road
29 commissions.
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1 (g) $50,000,000.00 to the state trunk line fund for debt
2 service costs on state of Michigan projects.
3 (g) (h) Ten percent to the comprehensive transportation fund
4 for the purposes described in section 10e.
5 (h) (i) $5,000,000.00 to the local bridge fund established in
6 subsection (4) for distribution only to the local bridge advisory
7 board, the regional bridge councils, cities, villages, and county
8 road commissions.
9 (i) (j) $36,775,000.00 to the state trunk line fund for
10 subsequent deposit in the transportation economic development fund
11 created in section 2 of 1987 PA 231, MCL 247.902, with first
12 priority for allocation to debt service on bonds issued to fund
13 transportation economic development fund projects. In addition,
14 $3,500,000.00 is appropriated from the Michigan transportation fund
15 to the state trunk line fund for subsequent deposit in the
16 transportation economic development fund created in section 2 of
17 1987 PA 231, MCL 247.902, to be used for economic development road
18 projects in any of the targeted industries described in section
19 9(1)(a) of 1987 PA 231, MCL 247.909.
20 (j) (k) Not less than $33,000,000.00 as may be annually
21 appropriated each fiscal year to the local program fund created in
22 section 11e.
23 (k) (l) The balance of the Michigan transportation fund, as
24 well as funds allocated to the Michigan transportation fund and
25 collected under the Michigan Regulation and Taxation of Marihuana
26 Act, 2018 IL 1, MCL 333.27951 to 333.27967, as follows, after
27 deduction of the amounts appropriated in subdivisions (a) to
28 (k):(j):
29 (i) 39.1% to the state trunk line fund for the purposes
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1 described in section 11 and section 10o(5).
2 (ii) 39.1% to the county road commissions of this state.
3 (iii) 21.8% to the cities and villages of this state.
4 (2) The money appropriated under this section must be used for
5 the purposes as provided in this act and any other applicable act.
6 Subject to section 9b, the department shall develop programs in
7 conjunction with the Michigan Chamber of Commerce and the Michigan
8 Minority Supplier Development Council to assist small businesses,
9 including those located in enterprise zones and those located in
10 empowerment zones as determined under federal law, as defined by
11 law in becoming qualified to bid.
12 (3) From federal funds, an amount equal to 31-1/2% of the
13 money formerly appropriated to this state from the federal
14 government under former 23 USC 157, commonly known as minimum
15 guarantee funds, must be allocated to the transportation economic
16 development fund, if the allocation is consistent with federal law.
17 This money must be distributed 16-1/2% for development projects for
18 rural counties as defined by law and 15% for capacity improvement
19 or advanced traffic management systems in urban counties as defined
20 by law. Federal money allocated for distribution under this section
21 is eligible for obligation and use by all recipients as provided in
22 the moving ahead for progress in the 21st century act, Public Law
23 112-141.
24 (4) A fund to be known as the local bridge fund is established
25 in the state treasury as a separate fund. The money appropriated to
26 the local bridge fund and the interest accruing to that fund must
27 be expended for the local bridge program. The purpose of the fund
28 is to provide financial assistance to highway authorities for the
29 preservation, improvement, or reconstruction of existing bridges or
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1 for the construction of bridges to replace existing bridges in
2 whole or part. The money in the local bridge fund is not subject to
3 section 12(15) or 13(5). The local bridge advisory board is created
4 and must consist of 6 voting members appointed by the state
5 transportation commission and 2 nonvoting members appointed by the
6 department. The board must include 3 members from the County Road
7 Association of Michigan, 1 member who represents counties with
8 populations 65,000 or greater, 1 member who represents counties
9 with populations greater than 30,000 and less than 65,000, and 1
10 member who represents counties with populations of 30,000 or less.
11 Three members must be appointed from the Michigan Municipal League,
12 1 member who represents cities with a population 75,000 or greater,
13 1 member who represents cities with a population less than 75,000,
14 and 1 member who represents villages. Each organization with voting
15 rights shall submit a list of nominees in each population category
16 to the state transportation commission. The state transportation
17 commission shall make the appointments from the lists submitted
18 under this subsection. Voting members must be appointed for 2
19 years. The chairperson of the board must be selected from among the
20 voting members of the board. In addition to the 2 nonvoting
21 members, the department shall provide qualified administrative
22 staff and qualified technical assistance to the board.
23 (5) No less than 5% and no more than 15% of the money received
24 in the local bridge fund may be used for critical repair of large
25 bridges and emergencies as determined by the local bridge advisory
26 board. Money remaining after the money allocated for critical large
27 bridge repair and emergencies is deducted must be distributed by
28 the board to the regional bridge councils created under this
29 section. One regional council must be formed for each department of
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1 transportation region as those regions exist on October 1, 2004.
2 The regional councils must consist of 2 members of the County Road
3 Association of Michigan from counties in the region, 2 members of
4 the Michigan Municipal League from cities and villages in the
5 region, and 1 member of the department in each region. The members
6 of the department are nonvoting members and shall provide qualified
7 administrative staff and qualified technical assistance to the
8 regional councils.
9 (6) Money in the local bridge fund after deduction of the
10 amounts set aside for critical repair of large bridges and
11 emergency repairs must be distributed among the regional bridge
12 councils according to all of the following ratios, which must be
13 assigned a weight expressed as a percentage as determined by the
14 board, with each ratio receiving no greater than a 50% weight and
15 no less than a 25% weight:
16 (a) A ratio with a numerator that is the total number of local
17 bridges in the region and a denominator that is the total number of
18 local bridges in this state.
19 (b) A ratio with a numerator that is the total local bridge
20 deck area in the region and a denominator that is the total local
21 bridge deck area in this state.
22 (c) A ratio with a numerator that is the total amount of
23 structurally deficient local bridge deck area in the region and a
24 denominator that is the total amount of structurally deficient
25 local bridge deck area in this state.
26 (7) The regional bridge councils shall allocate the money
27 received from the board for the preservation, improvement, and
28 reconstruction of existing bridges or for the construction of
29 bridges to replace existing bridges in whole or in part in each
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1 region.
2 (8) Each January, the department shall submit a report to the
3 chair and the minority vice-chair of the appropriations committees
4 of the senate and the house of representatives, and to the standing
5 committees on transportation of the senate and the house of
6 representatives, on all of the following activities for the
7 previous state fiscal year:
8 (a) A listing of how much money was dedicated for emergency
9 and large bridge repair.
10 (b) A listing of what emergency and large bridge repair
11 projects were funded.
12 (c) The actual weights used in the calculation required under
13 subsection (6).
14 (d) A listing of the total money distributed to each region.
15 (e) A listing of the specific projects that were funded under
16 subsection (7).
17 (9) The state transportation commission shall borrow money and
18 issue notes or bonds in an amount of not less than $30,000,000.00
19 to supplement the funding provided for the local bridge program
20 under subsection (5). The bonds or notes issued under this
21 subsection may be issued by the commission for any purpose for
22 which other local bridge money may be used under this section. The
23 bonds or notes authorized by this subsection must be issued by
24 resolution of the state transportation commission consistent with
25 the requirements of section 18b.
26 (10) The department shall promulgate rules under the
27 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
28 24.328, governing the administration of the local bridge program.
29 The rules must set forth the eligibility criteria for financial
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1 assistance under the program and other matters related to the
2 program that the department considers necessary and desirable. The
3 department shall take into consideration the availability of
4 federal aid and other financial resources of the highway authority
5 responsible for the bridge, the importance of the bridge to the
6