Bill Text: MI SB0995 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Transportation; funds; membership and duties of the local agency wetland mitigation board; clarify. Amends secs. 10 & 11h of 1951 PA 51 (MCL 247.660 & 247.661h).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-12-28 - Assigned Pa 0471'18 With Immediate Effect [SB0995 Detail]
Download: Michigan-2017-SB0995-Engrossed.html
SB-0995, As Passed House, December 18, 2018
SB-0995, As Passed Senate, December 6, 2018
SUBSTITUTE FOR
SENATE BILL NO. 995
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 10 and 11h (MCL 247.660 and 247.661h), section
10 as amended and section 11h as added by 2016 PA 246.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10. (1) A fund to be known as the Michigan transportation
fund is established in the state treasury as a separate fund. The
state treasurer may receive money or other assets from any source
for deposit into the fund. The state treasurer shall direct the
investment of the fund. The state treasurer shall credit to the
fund interest and earnings from fund investments. Except as
provided in this act, no other money, whether appropriated from the
general fund of this state or any other source, shall be deposited
in the Michigan transportation fund. Except as otherwise provided
in this section, the legislature shall appropriate money for the
necessary expenses incurred in the administration and enforcement
of the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170,
the motor carrier act, 1933 PA 254, MCL 475.1 to 479.42, and
sections 801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL
257.801 to 257.810. Money appropriated for necessary expenses shall
be based upon established cost allocation methodology that reflects
actual costs. Appropriations for the necessary expenses incurred by
the department of state in administration and enforcement of
sections 801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL
257.801 to 257.810, shall be made from the Michigan transportation
fund and from money in the transportation administration collection
fund created in section 810b of the Michigan vehicle code, 1949 PA
300, MCL 257.810b. Appropriations from the Michigan transportation
fund for the necessary expenses incurred by the department of state
in administration and enforcement of sections 801 to 810 of the
Michigan vehicle code, 1949 PA 300, MCL 257.801 to 257.810, shall
not exceed $20,000,000.00 per state fiscal year. Except as provided
in section 51d of the income tax act of 1967, 1967 PA 281, MCL
206.51d, all money in the Michigan transportation fund is
apportioned and appropriated in the following manner:
(a) Not more than $3,000,000.00 as may be annually
appropriated each fiscal year to the state trunk line fund for
subsequent deposit in the rail grade crossing account.
(b) Not more than $3,000,000.00 as may be annually
appropriated each fiscal year to the state trunk line fund for
subsequent deposit in the grade crossing surface account.
(c) Not more than $3,000,000.00 each year to the local bridge
fund established in subsection (4) for the purpose of payment of
the principal, interest, and redemption premium on any notes or
bonds issued by the state transportation commission under former
section 11b or subsection (9).
(d) Except as otherwise provided in this subdivision and
subject to section 11h, $2,000,000.00 each year of the revenue from
3 cents of the tax levied under section 8(1)(a) of the motor fuel
tax act, 2000 PA 403, MCL 207.1008, to the local agency wetland
mitigation
bank board fund created in section 11h.
(e) Except as otherwise provided in this subdivision,
$5,000,000.00 each year of the revenue from 3 cents of the tax
levied under section 8(1)(a) of the motor fuel tax act, 2000 PA
403, MCL 207.1008, to the movable bridge fund created in section
11g, with the remainder to the state trunk line fund, county road
commissions, and cities and villages in the percentages provided in
subdivision (l). The department shall annually adjust the amount
allocated under this subdivision by an amount equal to the annual
increase
in the Detroit consumer price index Consumer Price Index
for the preceding year.
(f) One-half of the revenue from 1 cent of the tax levied
under section 8(1)(a) of the motor fuel tax act, 2000 PA 403, MCL
207.1008, to the state trunk line fund for the repair of state
bridges under section 11, and 1/2 of the revenue from 1 cent of the
tax levied under section 8(1)(a) of the motor fuel tax act, 2000 PA
403, MCL 207.1008, to the local bridge fund created in subsection
(4) for distribution only to cities, villages, and county road
commissions.
(g) $50,000,000.00 to the state trunk line fund for debt
service costs on state of Michigan projects.
(h) Ten percent to the comprehensive transportation fund for
the purposes described in section 10e.
(i) $5,000,000.00 to the local bridge fund established in
subsection (4) for distribution only to the local bridge advisory
board, the regional bridge councils, cities, villages, and county
road commissions.
(j) $36,775,000.00 to the state trunk line fund for subsequent
deposit in the transportation economic development fund, with first
priority for allocation to debt service on bonds issued to fund
transportation economic development fund projects. In addition,
$3,500,000.00 is appropriated from the Michigan transportation fund
to the state trunk line fund for subsequent deposit in the
transportation economic development fund to be used for economic
development road projects in any of the targeted industries
described in section 9(1)(a) of 1987 PA 231, MCL 247.909.
(k) Not less than $33,000,000.00 as may be annually
appropriated each fiscal year to the local program fund created in
section 11e.
(l) The balance of the Michigan transportation fund as
follows, after deduction of the amounts appropriated in
subdivisions (a) to (k):
(i) 39.1% to the state trunk line fund for the purposes
described in section 11.
(ii) 39.1% to the county road commissions of this state.
(iii) 21.8% to the cities and villages of this state.
(2)
The money appropriated pursuant to under this section
shall be used for the purposes as provided in this act and any
other applicable act. Subject to the requirements of section 9b,
the department shall develop programs in conjunction with the
Michigan Chamber of Commerce and the Michigan Minority Supplier
Development Council to assist small businesses, including those
located in enterprise zones and those located in empowerment zones
as determined under federal law, as defined by law in becoming
qualified to bid.
(3) Thirty-one and one-half percent of the money appropriated
to this state from the federal government under 23 USC 157,
commonly known as minimum guarantee funds, shall be allocated to
the transportation economic development fund, if the allocation is
consistent with federal law. This money shall be distributed 16-
1/2% for development projects for rural counties as defined by law
and 15% for capacity improvement or advanced traffic management
systems in urban counties as defined by law. Federal money
allocated for distribution under this section is eligible for
obligation and use by all recipients as provided in the moving
ahead for progress in the 21st century act, Public Law 112-141.
(4) A fund to be known as the local bridge fund is established
in the state treasury as a separate fund. The money appropriated to
the local bridge fund and the interest accruing to that fund shall
be expended for the local bridge program. The purpose of the fund
is to provide financial assistance to highway authorities for the
preservation, improvement, or reconstruction of existing bridges or
for the construction of bridges to replace existing bridges in
whole or part. The money in the local bridge fund is not subject to
section 12(15) or 13(5). The local bridge advisory board is created
and shall consist of 6 voting members appointed by the state
transportation commission and 2 nonvoting members appointed by the
department. The board shall include 3 members from the County Road
Association of Michigan, 1 member who represents counties with
populations 65,000 or greater, 1 member who represents counties
with populations greater than 30,000 and less than 65,000, and 1
member who represents counties with populations of 30,000 or less.
Three members shall be appointed from the Michigan Municipal
League, 1 member who represents cities with a population 75,000 or
greater, 1 member who represents cities with a population less than
75,000, and 1 member who represents villages. Each organization
with voting rights shall submit a list of nominees in each
population category to the state transportation commission. The
state transportation commission shall make the appointments from
the lists submitted under this subsection. Voting members shall be
appointed for 2 years. The chairperson of the board shall be
selected from among the voting members of the board. In addition to
the 2 nonvoting members, the department shall provide qualified
administrative staff and qualified technical assistance to the
board.
(5) No less than 5% and no more than 15% of the money received
in the local bridge fund may be used for critical repair of large
bridges and emergencies as determined by the local bridge advisory
board. Money remaining after the money allocated for critical large
bridge repair and emergencies is deducted shall be distributed by
the board to the regional bridge councils created under this
section. One regional council shall be formed for each department
of transportation region as those regions exist on October 1, 2004.
The regional councils shall consist of 2 members of the County Road
Association of Michigan from counties in the region, 2 members of
the Michigan Municipal League from cities and villages in the
region, and 1 member of the department in each region. The members
of the department are nonvoting members and shall provide qualified
administrative staff and qualified technical assistance to the
regional councils.
(6) Money in the local bridge fund after deduction of the
amounts set aside for critical repair of large bridges and
emergency repairs shall be distributed among the regional bridge
councils according to all of the following ratios, which shall be
assigned a weight expressed as a percentage as determined by the
board, with each ratio receiving no greater than a 50% weight and
no less than a 25% weight:
(a) A ratio with a numerator that is the total number of local
bridges in the region and a denominator that is the total number of
local bridges in this state.
(b) A ratio with a numerator that is the total local bridge
deck area in the region and a denominator that is the total local
bridge deck area in this state.
(c) A ratio with a numerator that is the total amount of
structurally deficient local bridge deck area in the region and a
denominator that is the total amount of structurally deficient
local bridge deck area in this state.
(7) The regional bridge councils shall allocate the money
received from the board for the preservation, improvement, and
reconstruction of existing bridges or for the construction of
bridges to replace existing bridges in whole or in part in each
region.
(8) Each January, the department shall submit a report to the
chair and the minority vice-chair of the appropriations committees
of the senate and the house of representatives, and to the standing
committees on transportation of the senate and the house of
representatives, on all of the following activities for the
previous state fiscal year:
(a) A listing of how much money was dedicated for emergency
and large bridge repair.
(b) A listing of what emergency and large bridge repair
projects were funded.
(c) The actual weights used in the calculation required under
subsection (6).
(d) A listing of the total money distributed to each region.
(e) A listing of the specific projects that were funded under
subsection (7).
(9) The state transportation commission shall borrow money and
issue notes or bonds in an amount of not less than $30,000,000.00
to supplement the funding provided for the local bridge program
under subsection (5). The bonds or notes issued under this
subsection may be issued by the commission for any purpose for
which other local bridge money may be used under this section. The
bonds or notes authorized by this subsection shall be issued by
resolution of the state transportation commission consistent with
the requirements of section 18b.
(10) The department shall promulgate rules under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, governing the administration of the local bridge program.
The rules shall set forth the eligibility criteria for financial
assistance under the program and other matters related to the
program that the department considers necessary and desirable. The
department shall take into consideration the availability of
federal aid and other financial resources of the highway authority
responsible for the bridge, the importance of the bridge to the
highway, road, or street network, and the condition of the existing
bridge.
(11) The revenue appropriated to the local bridge fund under
subsection (1)(e) shall be distributed only to the local bridge
advisory board, the regional bridge councils, cities, villages, and
county road commissions.
(12) The regional bridge councils shall determine what bridge
projects are selected for funding from the local bridge fund
created in subsection (4) and shall make a list of selected
projects available to interested parties in the region. A
determination that a bridge project is selected for funding in a
given fiscal year is not approval to disburse the money.
(13) A county road commission, city, or village may implement
a bridge project if the bridge project has been selected for
funding and is included in the appropriate regional bridge
council's current multiyear bridge plan for the local bridge
program but the regional bridge council has not allocated money to
the bridge project for the fiscal year that the bridge project is
on the current multiyear bridge plan. A county road commission,
city, or village may borrow money to implement a project that has
been selected for funding and is included in the appropriate
regional bridge council's current multiyear bridge plan but has not
been allocated money by the regional bridge council. Based on
available local bridge money, when a bridge project that was
implemented with borrowed money is allocated funding in a
subsequent fiscal year, the funding shall only be used to repay the
amount approved by the multiyear bridge plan when the money was
borrowed. To be eligible for repayment of the amount borrowed, a
bridge project that has been implemented with borrowed money shall
be administered through the department's local bridge program.
Sec.
11h. (1) The local agency wetland mitigation bank board
fund is established in the state treasury as a separate fund. The
state treasurer may receive money or other assets from any source
for deposit into the fund. The state treasurer shall direct the
investment of the fund. The state treasurer shall credit to the
fund interest and earnings from fund investments.
(2) The money appropriated to the local agency wetland
mitigation
bank board fund and the interest accruing to that fund
shall
be expended for the local agency wetland mitigation bank
board program. The balance of the fund shall not exceed
$5,000,000.00
$8,000,000.00 at the beginning of a fiscal year, less
the amount of funds that have been obligated but not yet expended.
The
money in the local agency wetland mitigation bank board fund
is
not subject to section 12(15).
(3) The local agency wetland mitigation bank advisory board is
created and shall consist of the following 9 members:
(a) One voting member appointed by the County Road Association
of Michigan from a county with a population greater than 400,000.
(b) One voting member appointed by the County Road Association
of Michigan from a county with a population greater than 65,000 but
no more than 400,000.
(c) One voting member appointed by the County Road Association
of Michigan from a county with a population of less than 65,000.
(d) One voting member who shall be an engineer appointed
jointly by the County Road Association of Michigan and the Michigan
Municipal League.
(e) One voting member appointed by the Michigan Municipal
League from a city with a population of more than 70,000.
(f) One voting member appointed by the Michigan Municipal
League from a city with a population of 70,000 or less.
(g) One voting member appointed by the Michigan Municipal
League from a village.
(h) Two nonvoting members appointed by the department and the
department of environmental quality.
(4) Beginning on the effective date of the amendatory act that
added this subsection, the local agency wetland mitigation advisory
board is created and shall consist of the following 7 members:
(a) Four voting members from road agencies appointed jointly
by the County Road Association of Michigan and the Michigan
Municipal League.
(b) One voting member who shall be an engineer appointed
jointly by the County Road Association of Michigan and the Michigan
Municipal League.
(c) Two nonvoting members appointed by the department and the
department of environmental quality.
(5) (4)
The members first appointed to the local agency
wetland mitigation bank advisory board under subsection (3) shall
be appointed no later than October 1, 2015. The members first
appointed to the local agency wetland mitigation advisory board
under subsection (4) shall be appointed no later than April 1,
2019.
(6) (5)
Members of the board shall serve
for terms of 2 years
or
until a successor is appointed, whichever is later. ,
except
that
of the members first appointed 2 of the members appointed by
the
County Road Association of Michigan and 2 of the members
appointed
by the Michigan Municipal League shall serve for 1 year.
(7) (6)
If a vacancy occurs on the board,
the person that
appointed the vacating member shall make an appointment for the
unexpired term in the same manner as the original appointment.
(8) (7)
A member of the board may be
removed for incompetence,
dereliction of duty, malfeasance, misfeasance, or nonfeasance in
office, or any other good cause.
(9) (8)
The first meeting of the board
shall be called by the
member
appointed by the department under subsection (3)(h). (4)(c).
At the first meeting, the board shall elect from among its voting
members a chairperson and other officers as it considers necessary
or appropriate. After the first meeting, the board shall meet at
least quarterly.
(10) (9)
A majority of the voting members of
the board
constitute a quorum for the transaction of business at a meeting of
the board. A majority of the members present and serving are
required for official action of the board.
(11) (10)
A board member shall serve without
compensation, but
may receive reimbursement for necessary travel and expenses
consistent with applicable law and rules and procedures of the
civil service commission and department of technology, management,
and budget or local road agency policies, subject to available
funding. The board may employ a part-time or full-time manager or
engineer
who shall maintain and report the activities of the local
agency
wetland mitigation bank fund to the board, work or contract
with
local road agencies, engineers, and environmental consultants
a
person or firm to implement this
section and promote efficiency
and
economy in the operations of perform
professional, technical,
or administrative assistance or legal counsel. The board shall
determine the local agency wetland mitigation bank
program,
exercise
general oversight of construction to ensure that
environmental
laws and regulations, plans, and specifications are
followed,
and perform other duties as directed by the board.duties
of a person or firm employed under this subsection, and shall
require the manager and the board to retain insurances.
(12) (11)
The business that the board may
perform shall be
conducted at a public meeting of the board held in compliance with
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(13) (12)
A writing prepared, owned, used, in
the possession
of, or retained by the board in the performance of an official
function is subject to the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(14) (13)
The 2 nonvoting members of the
board, the
department, and the department of environmental quality shall
provide qualified administrative staff and qualified technical
assistance to the board as necessary.
(15) (14)
The local agency wetland mitigation
bank program
shall
provide grants funds to local road agencies for 1 or more of
the following:
(a) Complete engineering and design for a wetland mitigation
bank.site.
(b)
Purchase of land for a wetland mitigation bank.site.
(c)
Construction of a wetland mitigation bank.site.
(d) Monitoring and maintenance necessary to ensure that the
performance standards are or will be met.
(e) Obtaining conservation easements in perpetuity and
maintenance of endowment funds to manage wetland mitigation sites.
(f) (e)
Funding for a wetland mitigation bank
site established
before
the effective date of the amendatory act that added this
section.September 22, 2016.
(g) Purchasing wetland mitigation bank credits from an
established wetland mitigation bank approved by the department of
environmental quality to meet a local agency's wetland mitigation
permit requirements.
(16) (15)
Not more than 20% of a wetland
mitigation bank site
may be sold to the private sector, and any revenues generated from
that
sale shall be deposited into the local agency wetland bank
program fund.
(17) (16)
The board may approve the use of grant
local agency
wetland mitigation funds for other activities needed to establish a
wetland
mitigation bank site, a
pre-mitigation wetland area or
wetland preservation site, or other mitigation as permitted by law
upon a demonstrated need by a local road agency.
(18) (17)
An application for a grant funds
from the local
agency
wetland mitigation bank program shall be made on a form
approved by the board and shall contain the information required by
the
board. A grant An application for funds under this section may
be made at any time determined by the board.
(19) (18)
The board shall establish a review
process for
considering
grant funding applications under this section. No later
than
90 180 days after receiving a grant funding application
under
this section, the board shall notify the applicant in writing
whether
the grant application is approved or rejected. If the board
fails
to notify an applicant in writing whether a grant an
application is approved or rejected within 90 180 days
after
receiving
the grant funding application, the grant application
shall
be considered approved. Prior to releasing grant local agency
wetland
mitigation program funds, the board
shall enter into a
grant
an agreement with the grant funding recipient.
(20) (19)
For each year in which the board
receives grant
funding applications, the board shall report by October 1 to the
standing committees of the senate and the house of representatives
with primary jurisdiction over issues pertaining to transportation
and natural resources and the environment and to the senate and
house of representatives appropriations committees on the
utilization
of funds from the local agency wetland mitigation bank
board fund. The report shall include, at a minimum, all of the
following:
(a)
The number of grant funding
applications received under
this section.
(b)
The name of each local road agency applying for a grant,
funding, and whether each application was approved or denied.
(c)
The amount of local match for each grant awarded award
under this section.
(d)
The individual and annual cumulative amount of grant funds
awarded,
including an identification of the purpose of each grant
all funds awarded.
(21) Beginning on April 2, 2019, the local agency wetland
mitigation bank advisory board created in subsection (3) is
dissolved.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
