The bill amends Michigan's laws concerning the classification and funding of public roads, streets, and highways, with a focus on enhancing the efficiency of the Michigan transportation fund distribution to county road commissions. Key provisions include incentives for counties to form statewide purchasing pools, a reimbursement of up to $10,000 annually for employing licensed professional engineers, and a requirement that a percentage of funds returned to county road commissions be allocated for snow removal and the maintenance of county road systems. Notably, the bill reduces the maximum percentage of funds that can be spent on county local road systems from 35% to 30% annually, with an allowance for an additional 20% in emergencies, while ensuring that at least 90% of state revenue returned to county road commissions is dedicated to the preservation of transportation infrastructure.

Additionally, the bill introduces new regulations for the expenditure of federal revenue by county road commissions, mandating that if less than 90% of allocated federal funds are spent in a year, the commission must allocate 100% of federal revenue for preservation in subsequent years until compliance is met. It also outlines requirements for bond issuance, pavement warranties for significant construction projects, and the prioritization of funds for local street systems, emphasizing that returned funds must primarily support major street systems. The bill further mandates performance audits and clarifies definitions related to administrative expenses and population calculations for funding, while replacing the term "shall" with "must" to strengthen compliance language.

Statutes affected:
House Introduced Bill: 247.662, 247.663