HOUSE BILL No. 5408

 

 

January 11, 2018, Introduced by Rep. Cole and referred to the Committee on Transportation and Infrastructure.

 

     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 promote safe and efficient travel for

motor vehicle drivers, bicyclists, pedestrians, and other legal

users of roads, streets, and highways; 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 section 9a (MCL 247.659a), as amended by 2012 PA 298.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9a. (1) As used in this section:

 

     (a) "Asset management" means an ongoing process of

 

maintaining, preserving, upgrading, and operating physical assets

 

cost-effectively, based on a continuous physical inventory and

 

condition assessment and investment to achieve established

 

performance goals.

 

     (b) "Bridge" means a structure including supports erected over

 

a depression or an obstruction, such as water, a highway, or a

 

railway, for the purposes of carrying traffic or other moving

 

loads, and having an opening measuring along the center of the

 

roadway of more than 20 feet between undercopings of abutments or

 

spring lines of arches, or extreme ends of openings for multiple

 

boxes where the clear distance between openings is less than 1/2 of

 

the smaller contiguous opening.

 

     (c) "Central storage data agency" means that an agency or

 

office chosen by the council where the data collected is stored and


maintained.

 

     (d) "Council" means the transportation asset management

 

council created by this section.

 

     (e) "Department" means the state transportation department.

 

     (f) "Federal-aid eligible" means a public road or bridge that

 

is eligible for federal aid to be spent for the construction,

 

repair, or maintenance of that road or bridge.

 

     (g) "Local road agency" means a county road commission or

 

designated county road agency or city or village that is

 

responsible for the construction or maintenance of public roads

 

within the state under this act.

 

     (h) "Michigan infrastructure council" means the Michigan

 

infrastructure council created in section 3 of the Michigan

 

infrastructure council act.

 

     (i) (h) "Multiyear program" means a compilation of road and

 

bridge projects anticipated to be contracted for by the department

 

or a local road agency during a 3-year period. The multiyear

 

program shall include a listing of each project to be funded in

 

whole or in part with state or federal funds.

 

     (j) "Region" means the geographic jurisdiction of any of the

 

following:

 

     (i) A regional planning commission created under 1945 PA 281,

 

MCL 125.11 to 125.25.

 

     (ii) A regional economic development commission created under

 

1966 PA 46, MCL 125.1231 to 125.1237.

 

     (iii) A metropolitan area council formed under the

 

metropolitan area councils act, 1989 PA 292, MCL 124.651 to


124.729.

 

     (iv) A Michigan metropolitan planning organization established

 

under the moving ahead for progress in the 21st century act, Public

 

Law 112-141.

 

     (v) An agency directed and funded by section 822f of 2016 PA

 

268, to engage in joint decision-making practices related to, but

 

not limited to, community development, economic development,

 

talent, and infrastructure opportunities.

 

     (k) (i) "State planning and development regions" means those

 

agencies required by section 134 of title 23 of the United States

 

Code, 23 USC 134, and those agencies established by Executive

 

Directive 1968-1.

 

     (l) "Water asset management council" means the water asset

 

management council created in section 5002 of the natural resources

 

and environmental protection act, 1994 PA 451, MCL 324.5002.

 

     (2) In order to provide a coordinated, unified effort by the

 

various roadway road agencies within the this state, the

 

transportation asset management council is hereby created within

 

the state transportation commission and is charged with advising

 

until the Michigan infrastructure council is created. Upon creation

 

of the Michigan infrastructure council, the council shall be placed

 

within the Michigan infrastructure council and shall serve at the

 

pleasure of the Michigan infrastructure council.

 

     (3) The council shall advise the commission on a statewide

 

transportation asset management strategy and the processes and

 

necessary tools needed to implement such a that strategy, beginning

 

with the federal-aid eligible highway system, and once completed,


continuing on with the county road and municipal systems, in a

 

cost-effective, efficient manner. Nothing in this section shall

 

prohibit a local road agency from using an asset management process

 

on its non-federal-aid eligible system. in order to meet federal

 

performance management requirements that may be imposed as a

 

condition of federal aid, and including pavement and bridge

 

conditions on the federal-aid eligible highway system and

 

infrastructure assets that impact system performance, safety, or

 

risk management, including signals and culverts.

 

     (4) The transportation asset management council shall consist

 

of 10 12 voting members appointed by the state transportation

 

commission, who will serve at the pleasure of the chairperson of

 

the state transportation commission or, upon its creation, the

 

Michigan infrastructure council. The council shall include 2

 

members from the county road association of Michigan road agencies,

 

2 6 members from the Michigan municipal league, associations

 

representing local units of government, 2 members from the state

 

planning and development regions, 1 member from the Michigan

 

townships association, 1 member from the Michigan association of

 

counties, and 2 members from the department or other members

 

selected by the council. Nonvoting members shall include 1 person

 

from the agency or office selected as the location for central data

 

storage. Each agency with voting rights shall submit a list of 2

 

nominees to the state transportation commission from which the

 

appointments shall be made. The Michigan townships association

 

shall submit 1 name, and the Michigan association of counties shall

 

submit 1 name. Names shall be submitted within 30 days after July


3, 2002. The state transportation commission shall make the

 

appointments within 30 days after receipt of the lists.

 

     (5) (3) The positions for the department on the council shall

 

be permanent. The position of the central data storage agency shall

 

be nonvoting and shall be for as long as the agency continues to

 

serve as the data storage repository. The member from the Michigan

 

association of counties shall be initially appointed for 2 years.

 

The member from the Michigan townships association shall be

 

initially appointed for 3 years. Of the members first appointed

 

from the county road association of Michigan, the Michigan

 

municipal league, and the state planning and development regions, 1

 

member of each group shall be appointed for 2 years and 1 member of

 

each group shall be appointed for 3 years. At the end of the

 

initial appointment, all terms shall be for 3 years. All other

 

members of the council shall serve staggered 3-year terms. The

 

chairperson shall be selected from among the voting members of the

 

council.

 

     (6) A vacancy on the council shall be filled from a list of no

 

more than 3 recommended candidates provided by the association that

 

member would represent. The state transportation commission, or,

 

after its creation, the Michigan infrastructure council, shall

 

select the new member from the list of candidates provided under

 

this subsection.

 

     (7) (4) The department shall provide qualified administrative

 

staff and the state planning and development regions shall provide

 

qualified technical assistance to the council.

 

     (5) The council shall develop and present to the state


transportation commission for approval within 90 days after the

 

date of the first meeting the procedures and requirements that are

 

necessary for the administration of the asset management process.

 

The procedures and requirements developed and presented by the

 

council shall, at a minimum, include the areas of training, data

 

storage and collection, reporting, development of a multiyear

 

program, budgeting and funding, and other issues related to asset

 

management. All quality control standards and protocols shall, at a

 

minimum, be consistent with existing federal requirements and

 

regulations and existing government accounting standards.

 

     (6) The council may appoint a technical advisory panel whose

 

members shall be representatives from the transportation

 

construction associations and related transportation road

 

interests. The asset management council shall select members to the

 

technical advisory panel from names submitted by the transportation

 

construction associations and related transportation road

 

interests. The technical advisory panel members shall be appointed

 

for 3 years. The asset management council shall determine the

 

research issues and assign projects to the technical advisory panel

 

to assist in the development of statewide policies. The technical

 

advisory panel's recommendations shall be advisory only and are not

 

binding on the asset management council.

 

     (8) The council may appoint subcommittees or technical

 

advisory committees whose members shall serve as needed to provide

 

research on issues and projects as directed by the council. A

 

recommendation from a subcommittee or a technical advisory

 

committee appointed under this subsection is advisory only and is


not binding on the council.

 

     (9) The council shall advise the commission and the Michigan

 

infrastructure council on a statewide transportation asset

 

management strategy and the processes and tools needed to implement

 

that strategy, beginning with the federal-aid eligible highway

 

system, in order to meet federal performance management

 

requirements that may be imposed as a condition of federal aid. The

 

council shall also advise the commission and the Michigan

 

infrastructure council on the pavement and bridge condition of the

 

federal-aid eligible highway system, as well as infrastructure

 

assets that impact system performance, safety, or risk management,

 

including, but not limited to, signals and culverts.

 

     (10) When asset management efforts on the federal-aid eligible

 

highway system are completed, the Michigan infrastructure council

 

may direct the council to continue collecting data for the

 

remaining non-federal-aid eligible highway system in a cost-

 

effective and efficient manner.

 

     (11) This section does not prohibit a local road agency from

 

using an asset management process for a non-federal-aid eligible

 

road or street system within its jurisdiction, if the use of that

 

asset management process does not interfere with progress toward

 

other highway system goals.

 

     (12) Except as otherwise provided in this subsection, costs

 

incurred for data collection, analysis, or submittal, other than

 

costs covered by the council for the federal-aid eligible highway

 

system, are the responsibility of the owner of the data. If any

 

money remains after data collection for the federal-aid eligible


highway system in a region is complete, a local road agency may

 

request that the region collect data on local roads or streets

 

within that region. The region shall determine where to collect

 

local road or street data to expend its remaining data collection

 

money based upon requests received from local road agencies.

 

     (13) The council shall promote and oversee the implementation

 

of recommendations from the regional infrastructure asset

 

management pilot program on a statewide level as the program

 

relates to roads, bridges, and related transportation

 

infrastructure.

 

     (14) No later than October 1, 2019, the council shall develop

 

a template for an asset management plan for use by local road

 

agencies responsible for 100 or more certified miles of road and

 

require its submission to the transportation asset management

 

council as provided in subsection (17). The template required by

 

this subsection shall include, but is not limited to, all of the

 

following:

 

     (a) Asset inventory, including the location, material, size,

 

and condition of the assets, in a format that allows for digital

 

mapping. All quality control standards and protocols for assets

 

shall be consistent with existing federal requirements and

 

regulations and government accounting standards.

 

     (b) Performance goals, including the desired condition and

 

performance of the assets. The performance goals shall be

 

consistent with federally required efforts to set performance

 

targets and achieve performance goals for federal-aid eligible

 

roads and bridges. Performance goals may vary among assets under


the local road agency's jurisdiction to ensure that investment of

 

money received under this act achieves the greatest benefit for the

 

greatest number of road users.

 

     (c) Risk of failure analysis, including the identification of

 

the probability and criticality of a failure of the most critical

 

assets and any contingency plans.

 

     (d) Anticipated revenues and expenses, including a description

 

of all revenue sources and anticipated receipts for the period

 

covered by the asset management plan and expected infrastructure

 

repair and replacement expenditures, including planned improvements

 

and capital reconstruction.

 

     (e) Performance outcomes, including a determination of how the

 

local road agency's investment strategy will achieve the desired

 

levels of service and performance goals and the steps necessary to

 

ensure asset conditions meet or achieve stated goals and a

 

description and explanation of any gap between achievable condition

 

and performance through the investment strategy and desired goals.

 

     (f) A description of how the local road agency plans to

 

coordinate with other infrastructure owners, including neighboring

 

jurisdictions and utilities, to minimize duplication of effort

 

regarding infrastructure preservation and maintenance.

 

     (g) Proof of acceptance, certification, or adoption by the

 

local road agency's governing body.

 

     (15) (7) The As a condition of receiving funds under this act,

 

the department, each county road commission, and each city and

 

village of this state shall annually submit a report on

 

infrastructure conditions and investment to the transportation


asset management council. This report shall include a multiyear

 

program developed through the asset management process described in

 

this section. All of the following apply to a multiyear program

 

required by this subsection:

 

     (a) Projects Beginning on January 1, 2020, projects contained

 

in the department's annual multiyear program shall be consistent

 

with the department's asset management process and plan, and shall

 

be reported consistent with categories established by the

 

transportation asset management council.

 

     (b) Projects Beginning on January 1, 2022, projects contained

 

in the annual multiyear program of each local road agency

 

responsible for 100 or more certified miles of road shall be

 

consistent with the asset management process and plan of each that

 

local road agency and shall be reported consistent with categories

 

established by the transportation asset management council.

 

     (c) Projects contained in the annual multiyear program of each

 

local road agency responsible for less than 100 certified miles of

 

road shall be consistent with the asset management process of that

 

local road agency and shall be reported consistent with categories

 

established by the council.

 

     (16) No later than October 1, 2019, the council shall

 

establish a schedule for the submission of asset management plans

 

by local road agencies described in subsection (15)(b) that ensures

 

that 1/3 of those local road agencies submit an asset management

 

plan each year.

 

     (17) Beginning October 1, 2020, each local road agency

 

described in subsection (15)(b) shall begin submitting an asset


management plan to the council according to the 3-year schedule

 

described in subsection (16). The asset management plan shall cover

 

a period of at least 3 years, and shall be consistent with a

 

template provided by the council. A local road agency that is

 

required to submit an asset management plan under this subsection

 

that has not submitted the plan by October 1, 2024 is out of

 

compliance with this act and will not receive funding under this

 

act until it submits an asset management plan to the council that

 

satisfies the requirements of this section.

 

     (18) The council shall review a plan submitted under

 

subsection (17) no later than 6 months after receipt of the plan.

 

The council shall compare the plan to the minimum requirements of

 

this act, and the template created by the council, and determine

 

whether the plan is in compliance with those standards. If the plan

 

does not meet those standards, the council shall seek concurrence

 

from the department that the plan does not meet the council's

 

standards. If the department concurs, the council shall require the

 

local road agency to revise its plan to conform to the standards

 

within 6 months after notifying the local road agency that the plan

 

does not meet the council's standards.

 

     (19) Beginning October 1, 2025, a local road agency described

 

in subsection (15)(b) that cannot demonstrate that it has made

 

annual progress toward achieving the performance goals described in

 

its asset management plan shall not shift funds distributed to it

 

under this act from a county primary road system to a county local

 

road system or from a city major street system to a city local

 

street system, as applicable.


     (20) The department shall submit its transportation asset

 

management plan to the Federal Highway Administration for approval

 

as provided in 23 USC 119(e).

 

     (21) An annual report shall be prepared by the staff assigned

 

to the council regarding the results of activities conducted during

 

the preceding year and the expenditure of funds related to the

 

processes and activities identified by the council. The report

 

shall also include a summary analysis of the asset management plans

 

and annual reports received from local road agencies, a

 

determination of how investments are achieving desired levels of

 

service and performance goals, an identification of any additional

 

steps that may be needed to achieve desired levels of service and

 

performance goals, and an overview of the activities identified for

 

the succeeding year. The council shall submit this report to the

 

state transportation commission, the Michigan infrastructure

 

council, the legislature, and the transportation committees of the

 

house and senate by May 2 of each year.

 

     (22) (8) Funding necessary to support the activities described

 

in this section shall be provided by an annual appropriation from

 

the Michigan transportation fund to the state transportation

 

commission. Upon creation of the Michigan infrastructure council,

 

the annual appropriation provided for in this subsection shall be

 

allocated to the Michigan infrastructure council and shall be used

 

to support the activities described in this section.

 

     (23) (9) The department and each local road agency shall keep

 

accurate and uniform records on all road and bridge work performed

 

and funds expended for the purposes of this section, according to


the procedures developed by the council. Each local road agency and

 

the department shall annually report to the council the mileage and

 

condition of the road and bridge system under their jurisdiction

 

and the receipts and disbursements of road and street funds in the

 

manner prescribed by the council, which shall be consistent with

 

any current accounting procedures. An annual report shall be

 

prepared by the staff assigned to the council regarding the results

 

of activities conducted during the preceding year and the

 

expenditure of funds related to the processes and activities

 

identified by the council. The report shall also include an

 

overview of the activities identified for the succeeding year. The

 

council shall submit this report to the state transportation

 

commission, the legislature, and the transportation committees of

 

the house and senate by May 2 of each year.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.