Bill Text: MI HB5864 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Highways; construction and repair; distribution of money from Michigan transportation fund to counties, cities, and villages; modify. Amends secs. 10a, 12, 12b, 13 & 14 of 1951 PA 51 (MCL 247.660a et seq.).
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2014-10-01 - Printed Bill Filed 10/01/2014 [HB5864 Detail]
Download: Michigan-2013-HB5864-Introduced.html
HOUSE BILL No. 5864
September 30, 2014, Introduced by Reps. McMillin, Goike, Forlini and Kowall 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 sections 10a, 12, 12b, 13, and 14 (MCL 247.660a,
247.662, 247.662b, 247.663, and 247.664), section 10a as amended by
1992 PA 137, sections 12 and 13 as amended by 2012 PA 298, and
section 14 as amended by 1987 PA 234.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
10a. (1) Annually Until
the effective date of the 2014
amendatory
act that amended this subsection, the state
transportation
department shall determine the
miles of state trunk
line highways, county primary and local roads, and city and village
major and local streets transferred to and from state, county,
city, or village jurisdiction during the preceding period of July 1
to June 30. In each year after that determination, the transferred
mileage shall be accumulated and added to the mileage transferred
in each subsequent July 1 to June 30 period.
(2)
The Until the effective
date of the 2014 amendatory act
that amended this subsection, the current average revenue worth per
mile of a county primary road and a county local road shall be
determined annually by dividing the total county primary and local
road mileages respectively as of the first day of the preceding
July 1 to June 30 period into the total amount of Michigan
transportation
funds returned to counties pursuant to under this
act for use on county primary and local roads respectively during
that
period, except money returned to counties pursuant to under
section 12(2) and (3).
(3)
The Until the effective
date of the 2014 amendatory act
that amended this subsection, the total amount of money to be
transferred from and to the state trunk line fund, the counties,
cities, and villages shall be determined annually by multiplying
the current revenue worth per mile of a county primary road and a
county local road respectively by the number of accumulated miles
in each category transferred from and to state, county, city, or
village jurisdiction. If the transferred facility becomes
classified as part of the local road or street system of the
receiving jurisdiction, the transfer of money shall be calculated
on the basis of the revenue worth per mile of a county local road.
In any other category of jurisdictional transfer, the transfer of
money shall be calculated on the basis of the revenue worth per
mile of a county primary road.
(4)
For jurisdictional transfers made from the this state
to a
county, city, or village after July 1, 1992, the amount in the
state trunk line fund to be transferred shall be transferred to the
county,
city, or village receiving jurisdiction. If Until the
effective date of the 2014 amendatory act that amended this
subsection, if the transferred highway is then classified as part
of the local road or street system of the receiving jurisdiction,
the transfer of money to the receiving jurisdiction shall be
calculated on the basis of the revenue worth per mile of a county
local road as determined in subsection (2). If the transferred
highway is then classified as part of the primary road or major
street system of the receiving jurisdiction, the transfer of money
to the receiving jurisdiction shall be calculated on the basis of
the revenue worth per mile of a county primary road as determined
in
subsection (2). This subsection and subsection (5) shall not be
construed
to effect affect contracts entered into before or after
the
effective date of this subsection pursuant to Act No. 166 of
the
Public Acts of 1965, being sections 408.551 to 408.558 of the
Michigan
Compiled Laws, under 1965 PA
166, MCL 408.551 to 408.558,
for the maintenance of a transferred highway.
(5)
In cities and villages with a population of 25,000 or
more,
trunk line mileage that is transferred to local jurisdiction
after
July 1, 1992 and is then classified as a major street shall
be
certified at twice its measured length.
(5) Beginning on the effective date of the amendatory act that
added this subsection, the department shall determine the amounts
to be transferred under subsections (3) and (4) based on the
proportion that the population of the receiving county, city, or
village bears to the population of all other counties, cities, or
villages in this state.
(6) The transfer of funds money under
this section shall be
included each year in the October appropriation of the Michigan
transportation fund.
Sec. 12. (1) The amount distributed to the county road
commissions shall be returned to the county treasurers in the
manner, for the purposes, and under the terms and conditions
specified in this section. The department and the county road
association of Michigan shall jointly develop incentives for
counties to establish statewide purchasing pools for the more
efficient use of Michigan transportation funds.
(2) Each county road commission shall be reimbursed in an
amount up to $10,000.00 per year for the sum paid to a licensed
professional engineer employed or retained by the county road
commission in the previous year. The sum shall be returned to each
county road commission certified by the department as complying
with this subsection regarding the employment of an engineer.
(3) An amount equal to 1% of the total amount returned to the
county road commissions from the Michigan transportation fund
during the prior calendar year shall be withheld annually from the
counties'
November monthly distribution provided for in under
section 17, and the amount shall be returned to the county road
commissions
for snow removal purposes as provided in under section
12a.
(4) An amount equal to 10% of the total amount returned to the
county road commissions from the Michigan transportation fund shall
be returned to each county road commission having county primary,
or county local road, or both, mileage in the urban areas as
determined
pursuant to under section 12b. This sum shall be
distributed
pursuant to under section 12b. The return shall be in
addition to the amounts provided in subsections (6) and (7) and for
the purposes stated in those subsections.
(5) An amount equal to 4% of the total amount returned to the
county road commissions from the Michigan transportation fund shall
be returned to the county road commissions in the same percentages
as provided in subsection (7). All money returned to the county
road
commissions as provided in under
this subsection shall be
expended by the county road commissions for the preservation,
construction, acquisition, and extension of county local road
systems and shall be in addition to the amounts provided in
subsection (7).
(6) Seventy-five percent of the remainder of the total amount
to be returned to the counties shall be expended by each county
road commission for the preservation, construction, acquisition,
and extension of the county primary road system, including the
acquisition of a necessary right of way for the system, work
incidental to the system, and a roadside park or motor parkway
appurtenant to the system, and shall be returned to the counties as
follows:
(a) Three-fourths of the amount in proportion to the amount
received within the respective county during the 12 months next
preceding the date of each monthly distribution, as specific taxes
upon registered motor vehicles under the Michigan vehicle code,
1949 PA 300, MCL 257.1 to 257.923.
(b) One-tenth of the amount in the same proportion that the
total
mileage in the county primary road system population of each
county
bears to the total mileage in all of the county primary road
systems
of the population of this state.
(c) One eighty-third of the remaining 15% of the amount to
each county.
(7) The balance of the remainder of the total amount to be
returned to counties shall be expended by each county road
commission for the preservation, construction, acquisition, and
extension of the county local road system as defined by this act,
including the acquisition of a necessary right of way for the
system, work incidental to the system, and a roadside park or motor
parkway appurtenant to the system, and shall be returned to the
counties as follows:
(a) Sixty-five percent of the amount in the same proportion
that
the total mileage in population
of the county local road
system
of each county bears to the total mileage
in all of the
county
local road systems population
of the this state.
(b) Thirty-five percent of the amount in the same proportion
that the total population outside of incorporated municipalities in
each county bears to the total population outside of incorporated
municipalities
in all of the counties of the this
state, according
to the most recent statewide federal census as certified at the
beginning of the state fiscal year.
(8)
Money deposited in , or
becoming a part of the county road
funds of a board of county road commissioners shall be expended
first for the payment of principal and interest on the bonds, for
the payment of contractual contributions pledged for the payment of
bonds, for debt service requirements for the payment of contractual
contributions pledged for the payment of bonds, and for debt
service requirements for the payment of notes and loans in the
following order of priority:
(a) For the payment of contributions required to be made by a
board of county road commissioners under a contract entered into
under 1941 PA 205, MCL 252.51 to 252.64, that have been pledged for
the payment of the principal and interest on bonds issued under
that act, or for the payment of total debt service requirements
upon notes issued by a board of county road commissioners under
1943 PA 143, MCL 141.251 to 141.254.
(b) For the payment of principal and interest upon bonds
issued under section 18c, and the payment of contributions of a
board of county road commissioners made pursuant to contracts
entered into under section 18d that are pledged to the payment of
principal and interest on bonds issued after June 30, 1957, under
the
authorization of section 18c and contracts executed pursuant to
its
provisions.under section 18c.
(c) For the payment of principal and interest upon loans
received
pursuant to under section 11(5), to the extent other funds
have
money has not been made available for that payment.
(9)
Beginning November 1, 2008, no No
more than 50% per year
of the amount returned to a county for use on the county primary
road system may be expended, with or without matching, on the
county local road system of that county. Except as otherwise
provided in this subsection, beginning September 30, 2010, no more
than 30% per year of the amount returned to a county for use on the
county primary road system may be expended, with or without
matching, on the county local road system of that county. An
additional amount, not to exceed 20% per year of the amount
returned to a county for use on the county primary road system, may
be expended on the county local road system of that county if there
is an emergency or if the county road commission determines that an
additional 20% may be expended on the county local road system. The
county road commission may attach any conditions to its
determination if the determination is for nonemergency purposes,
including, but not limited to, a requirement that the additional
20% expended on the county local road system only be used to
supplement
funds money from other sources. No more than 15% per
year of the amount returned to a county for expenditure on the
county local road system may be used, with or without matching, on
the county primary road system of that county, and not to exceed an
additional 15% per year of the amount returned to a county for
expenditure on the county local road system, may, in case of an
emergency or with the approval of the county road commission, be
expended, with or without matching, on the county primary road
system of that county. An amount returned to a county for and on
account
of county local roads , under
this section , that
is in
excess of the total amount paid into the county treasury each year
by all of the townships of that county for and on account of the
county
local roads pursuant to under
section 14(6) may be
transferred to and expended on the county primary road system of
that county.
(10)
Not less than 20% per year of the funds money returned to
a county by this section shall be expended for snow and ice
removal, the construction or reconstruction of a new highway or
existing highway, and the acquisition of a necessary right of way
for those highways, and work incidental to those highways, or for
the servicing of bonds issued by the county for these purposes.
Surplus
funds money may be expended for the development,
construction, or repair of an off-street parking facility.
(11)
Not more than 5% per year of the funds money returned to
a county for the county primary road system and the county local
road system shall be expended for the maintenance, improvement, or
acquisition of appurtenant roadside parks and motor parkways.
(12)
Funds Money returned to a county shall be expended by the
county road commission for the purposes provided in this section
and shall be deposited by the county treasurer in a designated
county depository, in a separate account to the credit of the
county road fund, and shall be paid out only upon the order of the
county road commission, and interest accruing on the money shall
become a part of, and be deposited with the county road fund.
(13)
In a county to which funds are money
is returned under
this
section, the function of the county road commission shall be
is limited to the formation of policy and the performance of the
official duties imposed by law and delegated by the county board of
commissioners. A member of the county road commission shall not be
employed individually in any other capacity for other duties with
the county road commission.
(14) A county road commission may enter into an agreement with
a county road commission of an adjacent county and with a city or
village to perform work on a highway, road, or street, and with the
department with respect to a state trunk line highway and
connecting links of the state trunk line highway within the limits
of the county or adjacent to the county. The agreement may provide
for the performance by each contracting party of the work
contemplated by the contract including engineering services and the
acquisition of rights of way in connection with the work
contemplated, by purchase or condemnation, by any of the
contracting parties in its own name and the agreement may provide
for joint participation in the costs.
(15) Money distributed from the Michigan transportation fund
may be expended for construction purposes on county local roads
only to the extent matched by money from other sources. However,
Michigan transportation funds may be expended for the construction
of bridges on the county local roads in an amount not to exceed 75%
of the cost of the construction of local road bridges.
(16) Notwithstanding any other provision of this act, at least
90% of the state revenue returned annually to the county road
commission from the Michigan transportation fund less the amounts
described in subdivisions (a) to (e) shall be expended annually by
the county road commission for the preservation of highways, roads,
streets, and bridges, and for the payment of contractual
contributions pledged for the payment of bonds or portions of
bonds, debt service requirements for the payment of bonds or
portions of bonds, and debt service requirements for the payment of
notes and loans or portions of notes and loans issued or received
after
July 1, 1983, for the purpose of providing funds money for
the preservation of highways, roads, streets, and bridges. If an
appropriate certificate is filed under subsection (18) but only to
the extent necessary, this subsection does not prohibit the use of
any amount of state revenue returned annually to the county road
commissions for the payment of contractual contributions pledged
for the payment of bonds, for debt service requirements for the
payment of bonds, and for debt service requirements for the payment
of notes or loans, whenever issued or received, as specified under
subsection (8). The amounts that are deducted from the state
revenue returned to a county road commission from the Michigan
transportation fund, for the purpose of the calculation required by
this subsection are as follows:
(a) Amounts expended for the purposes described in subsection
(8) for bonds, notes, loans, or other obligations issued or
received before July 2, 1983.
(b) Amounts expended for the administrative costs of the
county road commission.
(c) Amounts expended for capital outlay projects for equipment
and buildings, and for the payment of contractual contributions
pledged for the payment of bonds, for debt service requirements for
the payment of bonds, and for debt service requirements for the
payment of notes and loans issued or received after July 1, 1983,
for
the purpose of providing funds money
for capital outlay
projects for equipment and buildings.
(d) Amounts expended for projects vital to the economy of the
local area or the safety of the public in the local area. Before
these amounts can be deducted, the governing body over the county
road commission or the county road commission, as applicable, shall
pass a resolution approving these projects. This resolution shall
state which projects will be funded and the cost of each project. A
copy of each approved resolution shall be forwarded immediately to
the department.
(e) Amounts expended in urban areas as determined pursuant to
section 12b.
(17) As used in this subsection, "urban routes" means those
portions of 2-lane county primary roads within an urban area that
have average daily traffic in excess of 15,000. Notwithstanding any
other provision of this act, except as provided in this subsection,
a county road commission shall annually expend at least 90% of the
federal revenue distributed to the county road commission for
highways, roads, streets, and bridges, less the amount expended on
urban routes for purposes other than preservation and the amount
expended for hard-surfacing of gravel roads on the federal-aid
system, on the preservation of highways, roads, streets, and
bridges. A county road commission may expend in 1 year less than
90% of the federal revenue distributed to the county road
commission for highways, roads, streets, and bridges, less the
amount expended on urban routes for purposes other than
preservation and the amount expended for hard-surfacing of gravel
roads on the federal-aid system, on the preservation of highways,
roads, streets, and bridges, if that year is part of a 3-year
period in which at least 90% of the total federal revenue
distributed in the 3-year period to the county road commission for
highways, roads, streets, and bridges, less the amount expended on
urban routes for purposes other than preservation purposes and the
amount expended for hard-surfacing of gravel roads on the federal-
aid system, is expended on the preservation of highways, roads,
streets, and bridges. If a county road commission expends in 1 year
less than 90% of the federal revenue distributed to the county road
commission for highways, roads, streets, and bridges, less the
amount expended on urban routes for purposes other than
preservation and the amount expended for hard-surfacing of gravel
roads on the federal-aid system, on the preservation of highways,
roads, streets, and bridges and that year is not a part of a 3-year
period in which at least 90% of the total federal revenue
distributed in the 3-year period to the county road commission for
highways, roads, streets, and bridges, less the amount expended on
urban routes for purposes other than preservation and the amount
expended for hard-surfacing of gravel roads on the federal-aid
system, is expended on the preservation of highways, roads,
streets, and bridges, the county road commission shall expend in
each year subsequent to the 3-year period 100%, or less in 1 year
if sufficient for the purposes of this subsection, of the federal
revenue distributed to the county road commission for highways,
roads, streets, and bridges, less the amount expended on urban
routes for purposes other than preservation and the amount expended
for hard-surfacing of gravel roads on the federal-aid system, on
the preservation of highways, roads, streets, and bridges until the
average percentage spent on the preservation of highways, roads,
streets, and bridges in the 3-year period and the subsequent years,
less the amount expended on urban routes for purposes other than
preservation and the amount expended for hard-surfacing of gravel
roads on the federal-aid system, is at least 90%. A year may be
included in only one 3-year period for the purposes of this
subsection. The requirements of this subsection shall be waived if
compliance would cause the county road commission to be ineligible
for federal revenue under federal law, but only to the extent
necessary to make the county road commission eligible for that
revenue under federal law. For the purpose of the calculations
required by this subsection, the amount expended on urban routes by
a county road commission for purposes other than preservation and
the amount expended for hard-surfacing of gravel roads on the
federal-aid system shall be deducted from the total federal revenue
distributed to the use of the county road commission.
(18) A county road commission shall certify to the department
on or before the issuance of any bonds or notes issued after July
1,
1983, pursuant to under 1943 PA 143, MCL 141.251 to 141.254,
1941 PA 205, MCL 252.51 to 252.64, or section 18c or 18d, for
purposes other than the preservation of highways, roads, streets,
and bridges and purposes other than the purposes specified in
subsection (16)(c) that its average annual debt service
requirements for all bonds and notes or portions of bonds and notes
issued after July 1, 1983, for purposes other than the preservation
of highways, roads, streets, and bridges and other than for the
purposes specified in subsection (16)(c), including the bond or
note
to be issued does not exceed 10% of the funds money returned
to
the county road commission pursuant to under this act, less the
amounts specified in subsection (16)(a), (b), and (c) during the
last completed fiscal year of the county road commission. If the
purpose for which the bonds or notes are issued is changed after
the issuance of the notes or bonds, the change shall be made in a
manner that maintains compliance with the certification required by
this subsection, as of the date the certificate was originally
issued, but no such change shall invalidate or otherwise affect the
bonds or notes with respect to which the certificate was issued or
the obligation to pay debt service on the bonds or notes. A
certification under this subsection is conclusive as to the matters
stated in the certification for purposes of the validity of bonds
and notes.
(19)
In each charter county to which funds are money is
returned under this section, the responsibility for road
improvement, preservation, and traffic operation work, and the
development, construction, or repair of off-road parking facilities
and construction or repair of road lighting shall be coordinated by
a single administrator to be designated by the county executive who
shall be responsible for and shall represent the charter county in
transactions
with the department pursuant to under
this act.
(20)
Not more than 10% per year of all of the funds money
received by and returned to a county from any source for the
purposes of this section may be expended for administrative
expenses. A county that expends more than 10% for administrative
expenses in a year is subject to section 14(5) unless a waiver is
granted by the department of treasury. As used in this subsection,
"administrative expenses" means those expenses that are not
assigned including, but not limited to, specific road construction
or preservation projects and are often referred to as general or
supportive services. Administrative expenses do not include net
equipment expense, net capital outlay, debt service principal and
interest, and payments to other state or local offices that are
assigned, but not limited to, specific road construction projects
or preservation activities.
(21) In addition to the financial compliance audits required
by law, the department may conduct performance audits and make
investigations
of the disposition of all state funds money received
by county road commissions, county boards of commissioners, or any
other county governmental agency acting as the county road
authority, for transportation purposes to determine compliance with
the terms and conditions of this act. Performance audits shall be
conducted according to government auditing standards issued by the
United States general accounting office. The department shall
develop performance audit procedures and reporting requirements
sufficient
to determine whether funds money
expended under this
section
were was expended in compliance with this act by September
1, 2012 and shall report to the transportation committees of the
senate and house of representatives no later than October 1, 2012
on the additional audit procedures and reporting requirements. The
department shall provide notice to the county road commission,
county board of commissioners, or any other county governmental
agency acting as the county road authority, as applicable, of the
standards to be used for audits performed under this subsection.
The notice shall be provided 6 months prior to the fiscal year in
which the audit is conducted. The department shall notify the
county road commission, county board of commissioners, or any other
county governmental agency acting as the county road authority of
any subsequent changes to the standards. County road commissions,
county boards of commissioners, or any other county governmental
agencies acting as county road authorities, as applicable, shall
make available to the department the pertinent records for the
audit. Performance audits may be performed at the discretion of the
department or upon receiving a request from the speaker of the
house of representatives or the senate majority leader.
Sec. 12b. (1) The amounts returned to the counties for the
county urban system as provided in section 12(4) shall be
distributed
on the basis of the county road mileage contained
population
within the urban area boundaries as
established pursuant
to
under this section.
(2)
On January 3, 1973, the department of transportation shall
establish
urban area boundaries which that
shall be reviewed and
corrected
periodically and which that
shall be in conformance with
conform to the federal-aid urban area definition as published by
the federal highway administration of the United States department
of transportation and in effect July 1, 1971.
(3) The amounts returned to the county road commissions
qualifying under this section shall be in the same proportion that
the
total population of the urban local road mileage, plus 6 times
the
urban primary road mileage of each county area bears to the
total
mileage in all the urban local road systems of the population
of
this state. ,
plus 6 times the total mileage in all the urban
primary
road systems of the state.
(4) All amounts returned to the county road commissions on the
basis
of the population of urban primary road mileage of areas in
each county are for use on the county primary road system and are
subject to the same provisions of this act as other amounts for
expenditure on the county primary road system.
(5) All amounts returned to the county road commissions on the
basis
of the population of urban local road mileage of areas in
each county are for expenditure on the county local road system and
are subject to the same provisions of this act as other amounts for
expenditure on the county local road systems.
Sec. 13. (1) The amount distributed to cities and villages
shall be returned to the treasurers of the cities and villages in
the manner, for the purposes, and under the terms and conditions
specified in this section. The amount received by a newly
incorporated municipality shall be in place of any other direct
distribution
of funds money from the Michigan transportation fund.
The population of a newly incorporated municipality as determined
under this section shall be added to the total population of all
incorporated
cities and villages in the this
state in computing the
amounts to be returned under this section to each municipality in
the
state. Major street mileage , and
local street mileage ,
and
equivalent
major mileage, if applicable, shall
be determined by the
department before the next month for which distribution is made
following the effective date of incorporation of a newly
incorporated municipality.
(2) From the amount available for distribution to cities and
villages during each December, the department shall withhold an
amount equal to 0.7% of the total amount returned to all cities and
villages under subsections (3) and (4) during the previous calendar
year. shall
be withheld. The department
shall use the amount
withheld
shall be used to partially reimburse cities and villages
located
in counties that are eligible for snow removal funds
pursuant
to money under section 12a and that have costs for winter
maintenance on major and local streets that are greater than the
statewide
average. The department shall
make distributions shall be
made
annually during February, and the distributions shall be
calculated separately for the major and local street systems but
may be paid in a combined warrant. The distribution to a city or
village shall be equal to 1/2 of its winter maintenance
expenditures after deducting the product of its total earnings
under subsections (3) and (4) multiplied by 2 times the average
municipal winter maintenance factor. Winter maintenance
expenditures shall be determined from the street financial reports
for the most current fiscal years ending before July 1. A city or
village that does not submit a street financial report for the
fiscal year ending before July 1 by the subsequent December 31 is
ineligible for the winter maintenance payment that is to be based
on that street financial report. The department shall determine the
average municipal winter maintenance factor annually by dividing
the total expenditures of all cities and villages on winter
maintenance of streets and highways by the total amount earned by
all cities and villages under subsections (3) and (4) during the 12
months. If the sum of the distributions to be made under this
subsection exceeds the amount withheld, the distributions to each
eligible city and village shall be reduced proportionately. If the
sum is less than the amount withheld, the balance shall be added to
the amount available for distribution under subsections (3) and (4)
during the next month. The distributions shall be for use on the
major and local street systems respectively and shall be subject to
the
same provisions as funds money
returned under subsections (3)
and (4).
(3) Seventy-five percent of the remaining amount to be
returned to the cities and villages, after deducting the amounts
withheld
pursuant to under subsection (2), shall be returned 60% in
the same proportion that the population of each bears to the total
population
of all cities and villages. , and 40% in the same
proportion
that the equivalent major mileage in each bears to the
total
equivalent major mileage in all cities and villages. The
amount returned under this subsection shall be used by each city
and village for the following purposes in the following order of
priority:
(a) For the payment of contributions required to be made by a
city or village under the provisions of contracts previously
entered into under 1941 PA 205, MCL 252.51 to 252.64, that have
been previously pledged for the payment of the principal and
interest on bonds issued under that act; or for the payment of the
principal and interest upon bonds issued by a city or village
pursuant
to under 1952 PA 175, MCL 247.701 to 247.707.
(b) Payment of obligations of the city or village on highway
projects undertaken by the city or village jointly with the
department.
(c) For the payment of principal and interest upon loans
received
pursuant to under section 11(5), to the extent other funds
have
money has not been made available for that payment.
(d) For the preservation, construction, acquisition, and
extension of the major street system as defined by this act
including the acquisition of a necessary right of way for the
system, work incidental to the system, and an appurtenant roadside
park or motor parkway, of the city or village and for the payment
of the principal and interest on that portion of the city's or
village's general obligation bonds that are attributable to the
construction or reconstruction of the city's or village's major
street
system. Not more than 5% per year of the funds money
returned to a city or village by this subsection shall be expended
for the preservation or acquisition of appurtenant roadside parks
and
motor parkways. Surplus funds money
may be expended for the
development, construction, or repair of off-street parking
facilities, the construction or repair of street lighting, and
transfer to the local street system under subsection (6).
(e) For capital outlay projects for equipment and buildings,
contributions pledged for the payment of loans and for the payment
of contractual debt service requirements for the payment of bonds
for
the purpose of providing funds money
for capital outlay
projects for equipment and buildings necessary to the development
and maintenance of the road system so long as amounts allocated
under this subdivision are used for transportation purposes.
(4) The remaining amount to be returned to incorporated cities
and villages shall be expended in each city or village for the
preservation, construction, acquisition, and extension of the local
street system of the city or village, including the acquisition of
a necessary right of way for the system, work incidental to the
system, and subject to subsection (5), for the payment of the
principal and interest on the portion of the city's or village's
general obligation bonds that are attributable to the construction
or reconstruction of the city's or village's local street system.
The amount returned under this subsection shall be returned to the
cities
and villages 60% in the same proportion that the population
of each bears to the total population of all incorporated cities
and
villages in the this state.
, and 40% in the same proportion
that
the total mileage of the local street system of each bears to
the
total mileage in the local street systems of all cities and
villages
of the state. The payment of the
principal and interest
upon
bonds issued by a city or village pursuant to under 1952
PA
175, MCL 247.701 to 247.707, and after that payment, the payment of
debt
service on loans received under section 11(5), shall have
priority in the expenditure of money returned under this
subsection.
(5) Money distributed to each city and village for the
maintenance and preservation of its local street system under this
act
represents the total responsibility of the this state
for local
street
system support. Funds Money
distributed from the Michigan
transportation fund shall not be expended for construction purposes
on city and village local streets except to the extent matched from
local revenues including other money returned to a city or village
by
the this state under the state constitution of 1963 and
statutes
of
the this state, from funds money that
can be raised by taxation
in cities and villages for street purposes within the limitations
of the state constitution of 1963 and statutes of this state, from
special assessments, or from any other source.
(6) Money returned under this section to a city or village
shall be expended on the major and local street systems of that
city or village. However, the first priority shall be the major
street system. Money returned for expenditure on the major street
system shall be expended in the priority order provided in
subsection
(3) except that surplus funds money
may be transferred
for
preservation of the local street system. Major street funds
money transferred for use on the local street system shall not be
used for construction but may be used for preservation. A city or
village shall not transfer more than 50% of its annual major street
funding for the local street system unless it has adopted and is
following an asset management process for its major and local
street systems and adopts a resolution with a copy to the
department setting forth all of the following:
(a) A list of the major streets in that city or village.
(b) A statement that the city or village is adequately
maintaining its major streets.
(c) The dollar amount of the transfer.
(d) The local streets to be funded with the transfer.
(e) A statement that the city or village is following an asset
management process for its major and local street systems.
(7) A city or village that has not adopted an asset management
plan shall obtain the concurrence of the department to transfer
more than 50% of its major street funding to its local street
system. The department may provide for pilot projects that would
allow a city or village that has adopted an asset management plan
under
subsection (6) to combine their local and major street funds
money into 1 street fund and to submit a single report to the
department
on the expenditure of funds money
on the local and major
street systems.
(8)
Not more than 10% per year of all of the funds money
returned to a city or village from any source for the purposes of
this section may be expended for administrative expenses. A city or
village that expends more than 10% for administrative expenses in a
year is subject to section 14(5).
(9)
In each city and village to which funds are money is
returned under this section, the responsibility for street
preservation and the development, construction, or repair of off-
street parking facilities and construction or repair of street
lighting shall be coordinated by a single administrator to be
designated by the governing body who shall be responsible for and
shall represent the municipality in transactions with the
department pursuant to this act.
(10) Cities and villages may provide for consolidated street
administration. A city or a village may enter into an agreement
with other cities or villages, the county road commission, or with
the state transportation commission for the performance of street
or highway work on a road or street within the limits of the city
or village or adjacent to the city or village. The agreement may
provide for any of the contracting parties to perform the work
contemplated by the contracts including services and acquisition of
rights of way, by purchase or condemnation in its own name. The
agreement may provide for joint participation in the costs if
appropriate.
(11)
Interest earned on funds money
returned to a city or a
village for purposes provided in this section shall be credited to
the appropriate street fund.
(12) In addition to the financial compliance audits required
by law, the department may conduct performance audits and make
investigations
of the disposition of all state funds money received
by cities and villages for transportation purposes to determine
compliance with the terms and conditions of this act. Performance
audits shall be conducted according to government auditing
standards issued by the United States general accounting office.
The department shall develop all performance audit procedures and
reporting
requirements sufficient to determine whether funds money
expended
under this section were was
expended in compliance with
this act by September 1, 2012 and shall report to the
transportation committees of the senate and house of
representatives no later than October 1, 2012 on the additional
audit procedures and reporting requirements. The audit procedures
shall include a review of the road fund balance of the city or
village. The cities and villages shall report their road fund
balances by fund balance component. The department shall assist
cities and villages to ensure that road fund balances are
consistently classified and are in compliance with the audit and
reporting requirements of this section. The department shall
provide notice to cities and villages of the standards to be used
for audits under this subsection prior to the fiscal year in which
the audit is conducted. The department shall notify cities and
villages of any subsequent changes to the standards. Cities and
villages shall make available to the department the pertinent
records for the audit. Performance audits may be performed at the
discretion of the department or upon receiving a request from the
speaker of the house of representatives or the senate majority
leader.
(13) As used in this section:
(a) "Administrative expenses" means expenses that are not
assigned under this section, including, but not limited to,
specific road construction or maintenance projects, and are often
referred to as general or supportive services. Administrative
expenses do not include net equipment expense, net capital outlay,
debt service principal and interest, or payments to other state or
local offices that are assigned, but not limited to, specific road
construction projects or maintenance activities.
(b)
"Equivalent major mileage" means the sum of 2 times the
state
trunk line mileage certified by the department as of March 31
of
each year, as being within the boundaries of each city and
village
having a population of 25,000 or more, plus the major
street
mileage in each city and village, multiplied by the
following
factor:
(i) 1.0 for cities and villages of 2,000 or less
population.
(ii) 1.1 for cities and villages from 2,001 to 10,000
population.
(iii) 1.2 for cities and villages from 10,001 to 20,000
population.
(iv) 1.3 for cities and villages from 20,001 to 30,000
population.
(v) 1.4 for cities and villages from 30,001 to 40,000
population.
(vi) 1.5 for cities and villages from 40,001 to 50,000
population.
(vii) 1.6 for cities and villages from 50,001 to 65,000
population.
(viii) 1.7 for cities and villages from 65,001 to 80,000
population.
(ix) 1.8 for cities and villages from 80,001 to 95,000
population.
(x) 1.9 for cities and villages from 95,001 to 160,000
population.
(xi) 2.0 for cities and villages from 160,001 to
320,000
population.
(xii) For cities over 320,000 population, a factor of
2.1
increased
successively by 0.1 for each 160,000 population increment
over
320,000.
(b) (c)
"Population" means the
population according to the
most recent statewide federal census as certified at the beginning
of the state fiscal year, except that, if a municipality has been
newly incorporated since completion of the census, the population
of
the municipality for purposes of the distribution of funds money
before completion of the next census shall be the population as
determined by special federal census, if there is a special federal
census, and if not, by the population as determined by the official
census in connection with the incorporation, if there is such a
census and, if not, by a special state census to be taken at the
expense
of the municipality by the secretary of state pursuant to
under section 6 of the home rule city act, 1909 PA 279, MCL 117.6.
Sec. 14. (1) Each county road commission and city and village
of the state shall prepare biennial primary road and major street
programs, based on long-range plans, and shall make the programs
available for review by the public.
(2)
Separate Cities, villages,
and county road commissions
shall
keep separate accounts shall be kept
by cities, villages, and
county
road commissions of all money
returned from the Michigan
transportation fund. This subsection shall not be construed to
prevent the combining of accounts on which separate bookkeeping
records are kept into a single deposit account.
(3) All county road commissions and cities and villages shall
keep accurate and uniform records on all road and street work and
funds,
money, and shall annually report to the state
transportation
department at the time, in the manner, and on forms prescribed by
the
state transportation department the mileage of estimated
traffic volume on each road system under their jurisdiction and the
receipts
and disbursements of road and street funds. money. In
the
annual report, each county road commission shall report on its
compliance in the preceding year with the requirements of section
12(16) and (17). The report shall also specify, with respect to
section 12(17), the total dollar amount expended for other than
maintenance purposes which would not have been permissible without
the deduction of certain urban route expenditures as permitted
under section 12(17). The report shall also specify the
justification for a waiver of the requirement of section 12(17), if
that requirement was waived.
(4)
The expenditure of All
county road commissions, cities,
and
villages may expend adequate amounts ,
by county road
commissions
and the cities and villages, from funds
money returned
by
under this act
, to cover the cost of administration,
engineering,
and record keeping, is hereby authorized, and
expenditures for those purposes shall be reported separately by
each
county road commission, city, and village to the state
transportation
department.
(5)
All distributions and returns of funds provided for in
money
under this act shall be withheld from
the state
transportation
department, eligible authorities,
county road
commissions, cities, villages, or other eligible governmental
agencies for failure to comply with any of the requirements of this
act, and the withholding shall continue for the period of
noncompliance.
(6) Money distributed to county road commissions for the
maintenance
and improvement of county local road systems pursuant
to
under section 12 represents the total responsibility of the
this
state
for local county road support. Additional funds money
required for the support of county local road systems may be
supplied from other money returned to the township governments by
the
this state under the state constitution of 1963 and
statutes of
the
this state, or from funds money that
can be raised by taxation
in the townships or counties for road purposes within the
limitations
of the state constitution of 1963 and statutes of the
this state.