The bill amends existing laws related to the classification and funding of public roads, streets, and highways in Michigan, with a particular focus on the state trunk line fund. It establishes the fund as a separate entity within the state treasury and outlines specific priorities for fund allocation, including bond payments, transfers to the transportation economic development fund, and rail grade crossing improvements. A key provision mandates that at least 90% of state revenue appropriated to the fund be dedicated to the preservation of highways, roads, streets, and bridges. The bill also requires the department to compile and publicly release an annual report on warranties for pavement projects exceeding $2 million, while introducing new definitions and requirements for loans to local road agencies.

Additionally, the bill streamlines the financing and management processes for local road agencies by establishing new loan procedures that align with bond interest rates and repayment schedules, and it removes the need for local agencies to seek voter or municipal finance commission approval for borrowing. It allows the state transportation commission to borrow money and issue bonds to support local road agencies, while also mandating annual updates on warranties for road projects. The bill emphasizes the efficient use of transportation funds, requiring county road commissions to use at least 90% of state and federal revenue for preservation purposes, and introduces performance audits to ensure compliance. Overall, the amendments aim to enhance accountability and improve the management of transportation funds at both the state and local levels.

Statutes affected:
House Introduced Bill: 247.661