March 20, 2007, Introduced by Rep. LaJoy and referred to the Committee on Transportation.
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,
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; and to repeal acts and
parts of acts,"
by amending sections 11e and 11f (MCL 247.661e and 247.661f),
section 11e as amended by 2006 PA 141 and section 11f as added by
2006 PA 140.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11e. (1) There is created within the state trunk line
fund a local program fund for the purpose of receiving funds
allocated from the Michigan transportation fund and from the state
trunk line fund. Funds received shall be distributed 64.2% to the
county road commissions of the state to be administered according
to section 12 and 35.8% to the cities and villages of the state to
be administered according to section 13.
(2) There is created within the state trunk line fund a local
federal match program for the purpose of receiving the proceeds of
bonds issued under section 18b that are to be repaid under section
11(1)(a)(iii). Funds deposited into the local federal match program
shall not exceed $80,000,000.00.
(3) The legislature intends that funds in the local federal
match program be used for 1 or more of the following:
(a) Projects that are the subject of a federal appropriation
in Public Law 109-59 or Public Law 105-78 and have been designated
as high priority road and bridge projects that have received
earmarks in the federal budget, so long as those projects are under
construction
or let for bid by the end of the fiscal year that
begins
on October 1, 2006 on or
before January 1, 2008.
(b) Projects scheduled to be under construction or let for bid
during the fiscal year that begins on October 1, 2006 and that can
be advanced to the fiscal year that began on October 1, 2005.
(c) Any project scheduled for any fiscal year after the fiscal
year that begins on October 1, 2006 that can be advanced and under
construction or let for bid during the fiscal year that begins on
October 1, 2005 or October 1, 2006.
Sec. 11f. (1) Funds received under the local federal match
program created in section 11e shall be granted to local
municipalities and other local road agencies to match federal aid
projects as provided in this subsection. Projects shall be
submitted to the state transportation department by the local
municipality or other local road agency. The department shall
review the submittals and apply criteria that take into account the
needs of highway, road, and street systems and an equitable
allocation of available funds considering the geographic location
of the proposed project. If the projects meet the criteria, the
state transportation department shall award grants to the extent of
available funds. An individual grant shall not exceed 25% of the
amount of federal funds available for the project. Projects
selected for funding shall meet all of the following criteria:
(a) The project shall be under construction or let for bid no
later
than September 30, 2007 January
1, 2008.
(b) The applicant shall have identified all of the necessary
funding to complete the project.
(c) The project shall be for the opening, widening, improving,
construction, or reconstruction of a federal aid eligible road or
street, including the work incidental to that opening, widening,
improving, construction, or reconstruction.
(2) All bond proceeds not used to fund grants awarded by
September
30, 2007 January 1, 2008 are appropriated for the
purposes described in section 11(1)(f).
(3) Beginning February 1, 2007, the department shall submit a
written report to the legislature by each February 1 containing all
of the following information:
(a) The balance contained in the program.
(b) A list of all projects currently funded under the program.
(c) A list of all federal high priority projects eligible for
funding under the program.
(d) A list of pending requests for funding under the program,
if any.
(4) The department shall submit a written report to the
legislature no later than 30 days after the program has expended
$40,000,000.00. The report shall contain all of the following:
(a) A list of all projects currently funded under the program.
(b) A list of federal high priority projects eligible to
receive funding from the program.
(c) A list of pending requests for funding under the program,
if any.
(5) The department shall provide additional criteria if
necessary for selecting the remaining projects to be funded in a
fiscal year no later than 30 days after the report required under
subsection (4) is issued. In determining the additional criteria to
apply to the remaining funds, the department shall consult with
interested local road agencies, the Michigan municipal league, and
the county road association of Michigan and shall utilize any
recommendations made on additional criteria by these entities
unless the department determines that the additional criteria are
inequitable or impractical. If the additional criteria are deemed
inequitable or impractical, the department is directed to work with
the interested parties to develop equitable and practical criteria.
The department shall apply those criteria that most equitably
distribute the remaining funds considering the geographic location
of the funded projects. In applying criteria, the department shall
take into account the needs of highway, road, and street systems
and an equitable allocation of available funds considering the
geographic location of the funded project.