SENATE BILL No. 420

 

 

June 30, 2015, Introduced by Senator KOWALL 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 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 11c (MCL 247.661c), as amended by 2002 PA 498.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 11c. (1) All federal aid construction projects , all

 

other projects of the department concerning highways, streets,

 

roads, and bridges, whose cost exceeds $100,000.00 for construction

 

or preservation as defined in section 10c, shall be performed by

 

contract awarded by competitive bidding unless the department shall

 

affirmatively find affirmatively finds that under the circumstances

 

relating to those projects, some other method is in the public

 

interest. All of those The director of the department shall report

 

his or her findings shall be reported to the state transportation

 

commission 90 days before work is commenced and promptly in writing

 

to the appropriations committees of the senate and house of

 

representatives. However, in a case in which the department

 

determines emergency action is required, the reports need not be

 

filed before work is commenced a contract is awarded but shall be

 

promptly filed. Local road agencies that make a decision not to

 

perform construction or preservation projects exceeding $100,000.00

 


shall contract for this work through competitive bidding.

 

     (2) All construction projects of a local road agency whose

 

costs exceed $100,000.00 for construction or preservation,

 

excluding maintenance, shall be performed by contract awarded by

 

competitive bidding unless the local road agency affirmatively

 

finds that under the circumstances relating to those projects, some

 

other method is in the public interest. Installation or upgrading

 

of advanced traffic management and signals is exempt from this

 

subsection. A county road commission shall report its findings

 

before work is commenced in writing to the county board of

 

commissioners of that county. A city or village shall report its

 

findings before work is commenced in writing to the governing

 

elected body of that city or village.

 

     (3) The department shall develop and implement a performance-

 

based maintenance system to improve efficiencies and outcomes in

 

the performance of maintenance services on state trunk line

 

highways.

 

     (4) No later than February 1, 2016, the department shall

 

develop and implement a performance rating system for the

 

maintenance services performed on all highways, streets, and roads

 

under its jurisdiction. The performance rating system shall provide

 

for the collection of data on all maintenance activities, including

 

the quantities and locations of activities performed and the costs

 

associated with those activities.

 

     (5) Beginning October 1, 2016, a minimum of 20% of all funds

 

expended by the department for maintenance services shall be based

 

on performance outputs or outcomes associated with the performance

 


rating system required under subsection (4).

 

     (6) Not later than September 30, 2017, the department shall

 

competitively bid and award a minimum of 1 contract for the full

 

performance of maintenance services of highways, streets, roads,

 

and bridges under its jurisdiction for an area not smaller than the

 

jurisdiction of 1 department service center. The director of the

 

department shall report results and findings made during the

 

contracting process and contract performance for all contracts

 

entered into under this subsection annually on December 1 of each

 

year to the appropriations committees of the senate and house of

 

representatives.

 

     (7) The director of the department shall report results and

 

findings on the outcomes of state trunk line highway maintenance

 

services, the contracting process, and contract performance for all

 

contracts entered into under this section no later than June 1,

 

2017, and on December 1 of each subsequent year to the

 

appropriations committees of the senate and house of

 

representatives.

 

     (8) A local road agency that received at least $20,000,000.00

 

in funding from the Michigan transportation fund in fiscal year

 

2013 shall develop, in conjunction with the transportation asset

 

management council and the department, and implement a performance-

 

based preventative maintenance system to improve efficiencies and

 

outcomes in the performance of preventative maintenance services on

 

all highways, streets, and roads under its jurisdiction.

 

     (9) No later than February 1, 2017, a local road agency

 

described in subsection (8) shall develop and implement a

 


performance rating system for the preventative maintenance services

 

performed on all highways, streets, and roads under its

 

jurisdiction. The performance rating system shall provide for the

 

collection of data on all preventative maintenance activities,

 

including the quantities and locations of activities performed and

 

the costs associated with those activities.

 

     (10) Beginning October 1 2017, a minimum of 20% of all funds

 

expended by a local road agency described in subsection (8) for

 

preventative maintenance services shall be based on performance

 

outputs or outcomes associated with the performance rating system

 

required under subsection (9).

 

     (11) The chief executive of each local road agency required to

 

competitively bid under this section shall report results and

 

findings on the outcomes of preventative maintenance services

 

performed on all highways, streets, and roads under the

 

jurisdiction of that local road agency, the contracting process,

 

and contract performance for all contracts entered into under this

 

section no later than June 1, 2018, and on June 1 of each

 

subsequent year to the director of the department and to the

 

appropriations committees of the senate and house of

 

representatives.

 

     (12) As used in this section:

 

     (a) "Local road agency" means that term as defined in section

 

9a.

 

     (b) "Maintenance services" means routine and reactive

 

maintenance activities undertaken to ensure the normal and safe

 

operation of a highway, street, or road, including activities

 


performed on an appurtenance or roadside feature associated with a

 

highway, street, or road that is necessary for the safe operation

 

of the appurtenance or roadside feature. Maintenance services do

 

not include a construction activity that is intended to

 

significantly repair, resurface, rehabilitate, or reconstruct a

 

highway, street, or road, or an appurtenance or roadside feature

 

associated with a highway, street, or road.