The bill amends sections 12 and 13 of the 1951 PA 51, which governs the classification and funding of public roads, streets, and highways in Michigan. It introduces several key changes, including the requirement for the County Road Association of Michigan and the department to develop incentives for counties to create statewide purchasing pools to improve the efficiency of transportation funds. Additionally, it mandates that each county road commission be reimbursed up to $10,000 annually for payments made to licensed professional engineers and specifies the distribution of funds for snow removal, road preservation, construction, and acquisition. The bill also sets limits on how funds can be allocated, such as capping the expenditure on local road systems to 30% of the amount returned for the primary road system, while ensuring that at least 20% of returned funds are dedicated to snow and ice removal.

Moreover, the bill outlines new requirements for county road commissions regarding bond issuance, coordination of road improvement responsibilities, and limitations on administrative expenses. It mandates securing pavement warranties for significant construction projects and requires reports on the use of increased funding related to townships with international airports. The bill also emphasizes the prioritization of road maintenance and improvement projects in the distribution of funds to cities and villages, introduces asset management plans for local street systems, and allows for the consolidation of street administration among municipalities. Key insertions include the requirement for funds to be expended toward asset management goals and the stipulation that certain administrative expenses must not exceed 10% of the total funds received.

Statutes affected:
Senate Introduced Bill: 247.662, 247.663