HB-5230, As Passed House, May 26, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5230

                                                                             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 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 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, critical 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; and to repeal acts and parts of             

acts,"                                                                      

by amending section 20a (MCL 247.670a), as amended by 2002 PA               

498.                                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 20a.  A board of county road commissioners in a county                 

2   having a population of not less than 500,000  and the township             

3   board of a township having a population of not less than  40,000

4   15,000, as determined by the most recent statewide federal                  

5   census, and which in the prior year and the contract year will              

6   have levied a property tax of not less than 1 mill on each dollar           

7   of assessed valuation of the township for the improvement or                

8   preservation of county roads within the township, may exercise              

9   the provisions of this section only by entering into a written              

10  contract of not more than 1 year providing for the preservation             

11  by the township of all or any part of the county local road                 

12  system within that township, subject to, but not limited to, the            

13  following conditions:                                                       

14      (a) The contract shall specify the total amount of money that               

15  shall be annually expended by the contracting township for the              

1   preservation of the local road system or part thereof.  The                 

2   contracting road commission may pay not more than  75% 90% of              

3   the amount specified in the contract to the contracting township            

4   annually.  The contracting road commission shall not pay more               

5   than 66% of an amount equal to the average annual amount of funds           

6   expended by the county road commission on the local road system             

7   located within the contracting township for construction and                

8   preservation purposes over the previous 5-year period from local            

9   road funds received by the county under this act.  Any funds                

10  expended by the contracting road commission on the local road               

11  system located within the contracting township in excess of 66%             

12  shall be matched by the contracting township.  The amount paid              

13  the contracting township shall not directly or indirectly include           

14  moneys money transferred from the primary fund allocation to              

15  the county as set forth in section 12(8).                                   

16      (b) The contracting township shall keep separate accounts and               

17  accurate and uniform records on all road preservation work and              

18  funds, and shall file with the state  highway transportation

19  commission and the contracting county road commission on or                 

20  before April 1 of each year, on forms to be provided by the state           

21  highway transportation commission, a report showing the                   

22  disposition of funds received and expended for road purposes.               

23  The failure of a contracting township to apply moneys returned             

24  pursuant to this act to the purposes herein prescribed shall                

25  result in the forfeiture by the contracting county of any and all           

26  funds to which it may have been entitled under this act and all             

27  funds so forfeited shall thereafter be apportioned among the                

House Bill No. 5230 (H-1) as amended May 26, 2004

1   other county road commissions in the same manner and proportion             

2   as hereinbefore provided for the distribution of the motor                  

3   vehicle highway fund.

4       (c) The contract shall require the contracting township to                  

5   provide insurance covering the contracting road commission's                

6   liability for failure to preserve the local roads specified in              

7   the contract.                                                               

8       (d) The contracting road commission shall determine and                     

9   specify the equipment and personnel necessary to provide the                

10  preservation as set forth in the contract, and the contract shall           

11  not take effect until the contracting township has acquired the             

12  necessary equipment and personnel  so  specified in the                     

13  contract.                                                                   

14       [(e) As used in this section, the term "preservation" shall be         

15  construed to include the same meaning  as  set forth in                     

16  section 10c.  If the contracting parties intend to give a                   

17  different meaning than  as set forth in section 10c, the               

18   contract shall so specify.

(e) As used in this section:

      (i) "County road commission" means the board of county road commissioners elected or appointed pursuant to section 6 of chapter IV of 1909 PA 283, MCL 224.6, or, in the case of a charter county with a population of 2,000,000 or more with an elected county executive that does not have a board of county road commissioners, the county executive for ministerial functions and the county commission provided for in section 14(1)(d) of 1966 PA 293, MCL 45.514, for legislative functions.

     (ii) "Preservation" means that term as defined in section 10c unless the contracting parties specify a different meaning in the contract.]