HOUSE BILL NO. 6269
December 10, 2024, Introduced by Reps. Morgan and McFall and referred to the Committee on
Transportation, Mobility and Infrastructure.
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
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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; to investigate and
study the tolling of roads, streets, highways, or bridges; and to
repeal acts and parts of acts,"
by amending section 10e (MCL 247.660e), as amended by 2012 PA 391.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 10e. (1) The comprehensive transportation fund is
2 appropriated for each fiscal year in the following order of
3 priority.
4 (2) The first priority is to pay, but only from money
5 restricted as to use by section 9 of article IX of the state
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1 constitution of 1963, the principal and interest on bonds or notes
2 issued under section 18b for comprehensive transportation purposes
3 as defined by law. A sufficient portion of the comprehensive
4 transportation fund is irrevocably appropriated to pay, when due,
5 the principal and interest on those bonds and notes.
6 (3) After making or setting aside payments required by
7 subsection (2), the second priority of the comprehensive
8 transportation fund is the payment of the department's cost in
9 administering the comprehensive transportation fund. The amount to
10 be expended pursuant to this subsection shall must not exceed the
11 costs appropriated for the administration of the fund in the fiscal
12 year ending September 30, 1987, as adjusted annually on October 1,
13 by the change for the preceding 12 months in the Detroit consumer
14 price index Consumer Price Index for urban wage earners and shall
15 must be appropriated annually by the legislature.
16 (4) After making or setting aside payments required by
17 subsections (2) and (3), the balance of the comprehensive
18 transportation fund shall must be expended each fiscal year as
19 appropriated annually by the legislature pursuant to the state
20 transportation program approved by the commission as follows:
21 (a) The third priority shall be is the payment of operating
22 grants to eligible authorities and eligible governmental agencies
23 according to the following formulations and subject to the
24 following requirements:
25 (i) For the fiscal year ending September 30, 1998, and for each
26 fiscal year thereafter, each Each eligible authority and eligible
27 governmental agency that provides public transportation services in
28 urbanized areas under 49 USC 5307, with a Michigan population
29 greater than 100,000 shall must receive a grant of as follows:
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1 (A) For the fiscal year ending September 30, 1998 through the
2 fiscal year ending September 30, 2024, up to 50% of their eligible
3 operating expenses as defined by the department.
4 (B) For the fiscal year ending September 30, 2025, not less
5 than 40% of their eligible operating expenses as defined by the
6 department.
7 (C) For the fiscal year ending September 30, 2026 and for each
8 fiscal year thereafter, not less than 50% of their eligible
9 operating expenses as defined by the department.
10 (ii) For the fiscal year ending September 30, 1998, and each
11 fiscal year thereafter, each Each eligible authority and eligible
12 governmental agency that provides public transportation services in
13 urbanized areas with a Michigan population less than or equal to
14 100,000 and nonurbanized areas under 49 USC 5311, shall must
15 receive a grant of as follows:
16 (A) For the fiscal year ending September 30, 1998 through the
17 fiscal year ending September 30, 2024, up to 60% of their eligible
18 operating expenses as defined by the department.
19 (B) For the fiscal year ending September 30, 2025, not less
20 than 50% of their eligible operating expenses as defined by the
21 department.
22 (C) For the fiscal year ending September 30, 2026, and for
23 each fiscal year thereafter, not less than 60% of their eligible
24 operating expenses as defined by the department.
25 (D) For purposes of receiving a grant under this subparagraph
26 sub-subparagraphs (A) through (C) in nonurbanized areas, eligible
27 costs of services provided by water vehicle shall must be
28 reimbursed at not less than 50% of the portion of the costs not
29 eligible for reimbursement by the federal government.
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1 (iii) If the money in the comprehensive transportation fund is
2 insufficient to fund the grants described in subparagraphs (i) and
3 (ii), the remainder of the grants must be funded, on appropriation,
4 from the general fund.
5 (iv) (iii) Funds shall must not be distributed to an eligible
6 authority or eligible governmental agency under this act unless the
7 eligible authority or eligible governmental agency provides or
8 agrees to provide preferential fares for public transportation
9 services to persons individuals 65 years of age or over or persons
10 individuals with disabilities riding in off peak periods of
11 service. As used in this section, "person with disabilities" means
12 an individual with a disability as that term is defined in 61 FR
13 56424 (November 1, 1996) and 49 CFR part 27. The preferential fares
14 shall must not be higher than 50% of the regular 1-way single fare.
15 (v) (iv) Eligible authorities and eligible governmental
16 agencies shall must not engage in charter service using vehicles,
17 facilities, or equipment funded under this act except on an
18 incidental basis as defined by 49 CFR part 604.
19 (vi) (v) Notwithstanding any other provision of this
20 subsection, for the fiscal year ending September 30, 1998, each
21 eligible authority and eligible governmental agency shall must
22 receive a distribution from the comprehensive transportation fund
23 not less than the distribution received for eligible operating
24 expenses for the fiscal year ending September 30, 1997. Beginning
25 with the fiscal year ending September 30, 1998 and each fiscal year
26 thereafter, each eligible authority and eligible governmental
27 agency shall must receive a distribution from the comprehensive
28 transportation fund for eligible operating expenses not less than
29 the distribution received for the fiscal year ending September 30,
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1 1997. As it relates to this subsection, the ratio between
2 comprehensive transportation funds and local funds in the fiscal
3 year ending September 30, 1989 shall must be maintained for all
4 fiscal years by the eligible authority and eligible governmental
5 agency. Reductions in this ratio shall must require a proportionate
6 reduction in the comprehensive transportation funds provided for
7 any fiscal year.
8 (vii) (vi) Each eligible authority and eligible governmental
9 agency receiving comprehensive transportation funds shall prepare
10 and submit to the department a quarterly report of the progress
11 made in carrying out its local transportation program within 40
12 days after the end of each fiscal year quarter. The progress report
13 shall must be made on forms authorized by the United States
14 department Department of transportation Transportation under the
15 provisions of the surface transportation and uniform relocation
16 assistance act of 1987, Public Law 100-17, 101 Stat . 132.
17 (viii) (vii) The department shall periodically adjust or
18 redistribute comprehensive transportation funds previously
19 distributed under this subdivision.
20 (b) For the fiscal year ending September 30, 1997, and each
21 fiscal year thereafter, not less than 10% shall must be distributed
22 by the department for intercity passenger and intercity freight
23 transportation purposes.
24 (c) For the fiscal year ending September 30, 1997, and each
25 fiscal year thereafter, funds remaining in the fund after payment
26 of the amounts required by subdivisions (a) and (b) shall must be
27 distributed by the department for public transportation purposes.
28 For the fiscal year ending September 30, 1998, and each fiscal year
29 thereafter, funds shall must be made available to match all
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1 projects for eligible authorities and eligible governmental
2 agencies that are approved for federal funding as provided by
3 federal law and for which an approved transportation improvement
4 program (TIP) and state transportation improvement plan (STIP)
5 exist. Funds distributed under this subdivision shall must be
6 expended pursuant to specific line item appropriation for, but are
7 not limited to, the following public transportation purposes:
8 (i) The specialized services assistance program. The
9 specialized services assistance program shall must be funded with
10 not less than $3,600,100.00 from funds distributed under this
11 subdivision. Funds shall must be distributed according to
12 guidelines developed by the department based upon the following
13 considerations:
14 (A) Proposals for coordinated specialized services assistance
15 funding shall must be developed jointly between existing eligible
16 authorities or eligible governmental agencies that provide public
17 transportation services and the area agencies on aging or any other
18 organization representing specialized services interests, as
19 defined in this subdivision. Plans shall must be reviewed and
20 approved by the bureau of urban and public transportation of the
21 department. Upon approval, the department shall must release the
22 funds to the eligible authority or eligible governmental agency,
23 which shall must then allocate the funds to the area agency on
24 aging or any other organization representing specialized services
25 interests, as defined in this subdivision for the purchase of
26 services as approved in the plan by the department.
27 (B) If an eligible authority or eligible governmental agency
28 does not exist to provide public transportation service in a
29 county, coordinated proposals for specialized services assistance
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1 funding may be submitted by the area agency on aging or any other
2 organization representing specialized services interests, as
3 defined in this subdivision. The proposals shall must be reviewed
4 and approved by the bureau of urban and public transportation of
5 the department. Upon approval, the department shall release the
6 funds to the area agency on aging or any other organization
7 representing specialized services interests, as defined in this
8 subdivision for the purchase of services as approved in the plan by
9 the department.
10 (C) For the purposes of this program, "specialized services"
11 means public transportation primarily designed for persons
12 individuals with disabilities or persons individuals who are 65
13 years of age or older.
14 (ii) Local bus capital. For the fiscal year ending September
15 30, 1998 and each fiscal year thereafter, not less than
16 $8,000,000.00 will must be distributed for either matching federal
17 funds for local bus capital or 100% capital projects for eligible
18 authorities and eligible governmental agencies that are not
19 eligible to receive federal capital formula funds under section
20 5307 of the federal intermodal surface transportation efficiency
21 act, Public Law 102-240, or any successor act.
22 (iii) Local bus new services.
23 (iv) Not less than $2,000,000.00 in each fiscal year for the
24 credit program established under section 10l.
25 (v) Public transportation development.
26 (vi) Other public transportation programs approved by the
27 commission.
28 (d) The unappropriated and unencumbered balance of the
29 comprehensive transportation fund lapses at the end of each fiscal
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1 year and reverts to the comprehensive transportation fund for
2 appropriation in the following fiscal year.
3 (5) Eligible authorities and eligible governmental agencies
4 shall must receive capital grants each fiscal year by the annual
5 process described in this section. Amounts received by an eligible
6 authority or eligible governmental agency pursuant to this
7 subsection shall must be expended by that authority or agency
8 solely for capital projects that have been approved by the state
9 transportation commission. Any funds approved by for distribution
10 to an eligible authority or eligible governmental agency pursuant
11 to this section that have not been encumbered by that agency or
12 authority for an approved capital project by the end of the
13 following fiscal year in which the funds were approved shall must
14 not be expended by the authority or agency and be are available for
15 distribution from the comprehensive transportation fund for the
16 purposes described in this section.
17 (6) The department, in carrying out the policy of the state
18 transportation commission, shall annually prepare and distribute by
19 December 1, instructions to eligible governmental agencies,
20 eligible authorities, and intercity carriers to enable the
21 preparation of a local transportation program. Eligible
22 governmental agencies, eligible authorities, and intercity carriers
23 shall give public notice of their intent to apply for money in the
24 comprehensive transportation fund to the residents of the counties,
25 townships, villages, and cities affected by the local
26 transportation program and shall make their application available
27 for a period of 30 days. All comments received by the eligible
28 governmental agency, eligible authority, or intercity carrier shall
29 must be transmitted to the department.
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1 (7) On or before March 1 of each year, each intercity carrier,
2 eligible authority, and eligible governmental agency shall submit
3 to the department its local transportation program for the next
4 succeeding fiscal year. The format for each local transportation
5 program shall must be as presc