Bill Text: MI SB1032 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Transportation; funds; continued funding for certain authorities; provide for. Amends secs. 10c, 10h, 10l & 10n of 1951 PA 51 (MCL 247.660c et seq.). TIE BAR WITH: SB 1031'09

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-12-17 - Referred To Committee On Transportation [SB1032 Detail]

Download: Michigan-2009-SB1032-Introduced.html

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SENATE BILL No. 1032

 

 

December 17, 2009, Introduced by Senator THOMAS and referred to the Committee on Transportation.

 

 

 

     A bill to amend 1951 PA 51, entitled

 

"An act to provide for the classification of all public roads,

streets, and highways in this state, and for the revision of that

classification and for additions to and deletions from each

classification; to set up and establish the Michigan transportation

fund; to provide for the deposits in the Michigan transportation

fund of specific taxes on motor vehicles and motor vehicle fuels;

to provide for the allocation of funds from the Michigan

transportation fund and the use and administration of the fund for

transportation purposes; to set up and establish the truck safety

fund; to provide for the allocation of funds from the truck safety

fund and administration of the fund for truck safety purposes; to

set up and establish the Michigan truck safety commission; to

establish certain standards for road contracts for certain

businesses; to provide for the continuing review of transportation

needs within the state; to authorize the state transportation

commission, counties, cities, and villages to borrow money, issue

bonds, and make pledges of funds for transportation purposes; to

authorize counties to advance funds for the payment of deficiencies

necessary for the payment of bonds issued under this act; to

provide for the limitations, payment, retirement, and security of

the bonds and pledges; to provide for appropriations and tax levies

by counties and townships for county roads; to authorize

contributions by townships for county roads; to provide for the

establishment and administration of the state trunk line fund,

local bridge fund, comprehensive transportation fund, and certain

other funds; to provide for the deposits in the state trunk line

fund, critical bridge fund, comprehensive transportation fund, and

certain other funds of money raised by specific taxes and fees; to

provide for definitions of public transportation functions and

criteria; to define the purposes for which Michigan transportation

funds may be allocated; to provide for Michigan transportation fund

grants; to provide for review and approval of transportation

programs; to provide for submission of annual legislative requests

and reports; to provide for the establishment and functions of

certain advisory entities; to provide for conditions for grants; to

provide for the issuance of bonds and notes for transportation

purposes; to provide for the powers and duties of certain state and

local agencies and officials; to provide for the making of loans

for transportation purposes by the state transportation department

and for the receipt and repayment by local units and agencies of

those loans from certain specified sources; and to repeal acts and

parts of acts,"

 

by amending sections 10c, 10h, 10l, and 10n (MCL 247.660c, 247.660h,

 

247.660l, and 247.660n), section 10c as amended by 2008 PA 485,

 

section 10h as amended by 2002 PA 498, section 10l as amended by

 

1987 PA 234, and section 10n as amended by 2002 PA 329.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 10c. As used in this act:

 

     (a) "Urban or rural area" means a contiguous developed area,

 

including the immediate surrounding area, where transportation

 

services should reasonably be provided presently or in the future;

 

the area within the jurisdiction of an eligible authority; or for

 

the purpose of receiving funds for public transportation, a

 

contiguous developed area having a population of less than 50,000

 

that has an urban public transportation program approved by the

 

state transportation department and for which the state

 

transportation commission determines that public transportation

 

services should reasonably be provided presently or in the future.

 

     (b) "Eligible authority" means an authority organized under

 

the metropolitan transportation authorities act of 1967, 1967 PA

 

204, MCL 124.401 to 124.426, or an authority organized or continued

 

under the Detroit area regional transportation authority act.

 

     (c) "Eligible governmental agency" means a county, city, or

 

village or an authority created under 1963 PA 55, MCL 124.351 to

 

124.359; the urban cooperation act of 1967, 1967 (Ex Sess) PA 7,

 

MCL 124.501 to 124.512; 1967 (Ex Sess) PA 8, MCL 124.531 to

 

124.536; 1951 PA 35, MCL 124.1 to 124.13; the public transportation

 

authority act, 1986 PA 196, MCL 124.451 to 124.479; or the revenue

 

bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140.

 

     (d) "Transit vehicle" means a bus, rapid transit vehicle,

 

railroad car, street railway car, water vehicle, taxicab, or other

 

type of public transportation vehicle or individual unit, whether

 

operated singly or in a group which provides public transportation.

 

     (e) "Transit vehicle mile" means a transit vehicle operated

 

for 1 mile in public transportation service including demand

 

actuated and line-haul vehicle miles.

 

     (f) "Demand actuated vehicle" means a bus or smaller transit

 

vehicle operated for providing group rides to members of the

 

general public paying fares individually, and on demand rather than

 

in regularly scheduled route service.

 

     (g) "Demand actuated vehicle mile" means a demand actuated

 

vehicle operated for 1 mile in service to the general public.

 

     (h) "Public transportation", "comprehensive transportation",

 

"public transportation service", "comprehensive transportation

 

service", "public transportation purpose", or "comprehensive

 

transportation purpose" means the movement of people and goods by

 

publicly or privately owned water vehicle, bus, railroad car,

 

street railway, aircraft, rapid transit vehicle, taxicab, or other

 

conveyance which provides general or special service to the public,

 

but not including charter or sightseeing service or transportation

 

which is exclusively for school purposes. Public transportation,

 

public transportation services, or public transportation purposes;

 

and comprehensive transportation, comprehensive transportation

 

services, or comprehensive transportation purposes as defined in

 

this subdivision are declared by law to be transportation purposes

 

within the meaning of section 9 of article IX of the state

 

constitution of 1963.

 

     (i) "State transportation commission" means the state

 

transportation commission established in section 28 of article V of

 

the state constitution of 1963.

 

     (j) "Governmental unit" means the state transportation

 

department, the state transportation commission, a county road

 

commission, a city, or a village.

 

     (k) "Department" or "department of transportation" means the

 

state transportation department, the principal department of state

 

government created under section 350 of the executive organization

 

act of 1965, 1965 PA 380, MCL 16.450.

 

     (l) "Preservation" means an activity undertaken to preserve the

 

integrity of the existing roadway system. Preservation does not

 

include new construction of highways, roads, streets, or bridges, a

 

project that increases the capacity of a highway facility to

 

accommodate that part of traffic having neither an origin nor

 

destination within the local area, widening of a lane width or

 

more, or adding turn lanes of more than 1/2 mile in length.

 

Preservation includes, but is not limited to, 1 or more of the

 

following:

 

     (i) Maintenance.

 

     (ii) Capital preventive treatments.

 

     (iii) Safety projects.

 

     (iv) Reconstruction.

 

     (v) Resurfacing.

 

     (vi) Restoration.

 

     (vii) Rehabilitation.

 

     (viii) Widening of less than the width of 1 lane.

 

     (ix) Adding auxiliary weaving, climbing, or speed change lanes.

 

     (x) Modernizing intersections.

 

     (xi) Adding auxiliary turning lanes of 1/2 mile or less.

 

     (xii) Installing traffic signs in new locations, installing

 

signal devices in new locations, and replacing existing signal

 

devices.

 

     (m) "Maintenance" means routine maintenance or preventive

 

maintenance, or both. Maintenance does not include capital

 

preventive treatments, resurfacing, reconstruction, restoration,

 

rehabilitation, safety projects, widening of less than 1 lane

 

width, adding auxiliary turn lanes of 1/2 mile or less, adding

 

auxiliary weaving, climbing, or speed-change lanes, modernizing

 

intersections, or the upgrading of aggregate surface roads to hard

 

surface roads. Maintenance of state trunk line highways does not

 

include streetlighting except for freeway lighting for traffic

 

safety purposes.

 

     (n) "Routine maintenance" means actions performed on a regular

 

or controllable basis or in response to uncontrollable events upon

 

a highway, road, street, or bridge. Routine maintenance includes,

 

but is not limited to, 1 or more of the following:

 

     (i) Snow and ice removal.

 

     (ii) Pothole patching.

 

     (iii) Unplugging drain facilities.

 

     (iv) Replacing damaged sign and pavement markings.

 

     (v) Replacing damaged guardrails.

 

     (vi) Repairing storm damage.

 

     (vii) Repair or operation of traffic signs and signal systems.

 

     (viii) Emergency environmental cleanup.

 

     (ix) Emergency repairs.

 

     (x) Emergency management of road closures that result from

 

uncontrollable events.

 

     (xi) Cleaning streets and associated drainage.

 

     (xii) Mowing roadside.

 

     (xiii) Control of roadside brush and vegetation.

 

     (xiv) Cleaning roadside.

 

     (xv) Repairing lighting.

 

     (xvi) Grading.

 

     (o) "Preventive maintenance" means a planned strategy of cost-

 

effective treatments to an existing roadway system and its

 

appurtenances that preserve assets by retarding deterioration and

 

maintaining functional condition without significantly increasing

 

structural capacity. Preventive maintenance includes, but is not

 

limited to, 1 or more of the following:

 

     (i) Pavement crack sealing.

 

     (ii) Micro surfacing.

 

     (iii) Chip sealing.

 

     (iv) Concrete joint resealing.

 

     (v) Concrete joint repair.

 

     (vi) Filling shallow pavement cracks.

 

     (vii) Patching concrete.

 

     (viii) Shoulder resurfacing.

 

     (ix) Concrete diamond grinding.

 

     (x) Dowel bar retrofit.

 

     (xi) Bituminous overlays of 1-1/2 inches or less in thickness.

 

     (xii) Restoration of drainage.

 

     (xiii) Bridge crack sealing.

 

     (xiv) Bridge joint repair.

 

     (xv) Bridge seismic retrofit.

 

     (xvi) Bridge scour countermeasures.

 

     (xvii) Bridge painting.

 

     (xviii) Pollution prevention.

 

     (xix) New treatments as they may be developed.

 

     (p) "County road commission" means the board of county road

 

commissioners elected or appointed pursuant to section 6 of chapter

 

IV of 1909 PA 283, MCL 224.6, or, in the case of a charter county

 

with a population of 2,000,000 or more with an elected county

 

executive that does not have a board of county road commissioners,

 

the county executive for ministerial functions and the county

 

commission provided for in section 14(1)(d) of 1966 PA 293, MCL

 

45.514, for legislative functions.

 

     (q) "Capital preventive treatments" means any preventive

 

maintenance category project on state trunk line highways that

 

qualifies under the department's capital preventive maintenance

 

program.

 

     Sec. 10h. (1) By May 1 of each year, the state transportation

 

commission shall report to each member of the legislature, the

 

governor, and the auditor general its recommendations for a

 

transportation program which the state transportation commission

 

acts on under section 10e(10). The report shall specify the

 

following:

 

     (a) The estimated amount of money in the comprehensive

 

transportation fund to be distributed in the following fiscal year

 

and the amount of money in the comprehensive transportation fund to

 

be distributed to each eligible authority, each intercity carrier,

 

each eligible governmental agency, and the state transportation

 

department; the estimated amount of money in the state trunk line

 

fund to be distributed to the state transportation department for

 

the preservation, as defined in section 10c, of state trunk line

 

highways; and the estimated amount of money in the state trunk line

 

fund to be distributed to the state transportation department for

 

all other purposes in the following fiscal year. The report shall

 

further subdivide the money to be distributed to each eligible

 

authority, each intercity carrier, each eligible governmental

 

agency, the state transportation department from the comprehensive

 

transportation fund, the state transportation department from the

 

state trunk line fund for the preservation of state trunk line

 

highways, and the state transportation department from the state

 

trunk line fund for all other purposes specifying how much of that

 

money is proposed to be expended for either capital acquisitions,

 

including demonstration projects, or for operating expenses,

 

including demonstration projects.

 

     (b) An account of all expenditures of funds distributed from

 

the state trunk line fund and the comprehensive transportation fund

 

to the state transportation department, eligible authorities,

 

intercity carriers, and eligible governmental agencies, and the

 

progress made by the state transportation department, eligible

 

authorities, intercity carriers, and eligible governmental agencies

 

in carrying out the approved transportation programs in the

 

preceding fiscal year through the use of those funds. The progress

 

report shall be made based on information supplied to the state

 

transportation department on forms authorized by the federal

 

department of transportation. For those eligible authorities,

 

intercity carriers, and eligible governmental agencies not

 

receiving federal funds pursuant to the urban mass transportation

 

act of 1964, Public Law 88-365, the progress report shall be made

 

upon forms supplied by the state transportation department. The

 

progress report shall also contain the whole amount of the expenses

 

of the state transportation department for the fiscal year.

 

     (c) Each project certified to be eligible for a multiyear

 

funding commitment.

 

     (d) The status of all multiyear funding commitments.

 

     (e) An account of the state transportation department's

 

compliance in the preceding year with the requirements of section

 

11(2) and (3). The report shall also specify the justification for

 

a waiver of the requirement of section 11(3), if that requirement

 

was waived.

 

     (2) The financial transactions and accounts related to

 

distributions made from the comprehensive transportation fund to an

 

eligible authority created under the metropolitan transportation

 

authorities act of 1967, 1967 PA 204, MCL 124.401 to 124.426, shall

 

be audited pursuant to that act the metropolitan transportation

 

authorities act of 1967, 1967 PA 204, MCL 124.401 to 124.426, or

 

the Detroit area regional transportation authority act, whichever

 

applies. The cost of the audit shall be paid by the eligible

 

authority. The financial transactions and accounts related to

 

distributions made from the fund to an eligible governmental

 

agency, other than a county, shall be audited in accordance with

 

the uniform budgeting and accounting act, 1968 PA 2, MCL 141.421 to

 

141.440a. The financial transactions and accounts related to

 

distributions made from the fund to a county which is an eligible

 

governmental agency shall be audited in accordance with 1919 PA 71,

 

MCL 21.41 to 21.55. The financial transactions and accounts

 

relative to distributions made to an intercity carrier shall be

 

audited by an independent certified public accountant in accordance

 

with instructions promulgated by the department of treasury. A copy

 

of the complete audit report and management letter shall be

 

submitted by the eligible authority, intercity carrier, or eligible

 

governmental agency to the state transportation department. The

 

department of treasury shall develop minimum audit standards and

 

requirements.

 

     (3) There is hereby established a task force composed of the

 

Michigan public transit association, the Michigan motorbus

 

association, the Michigan rail users and supporters association,

 

the Michigan railroad association, a representative of a state-

 

owned or leased short line railroad, and the office of auditor

 

general or a certified public accountant appointed by the auditor

 

general, to assist the department in the development of the

 

progress report requirements outlined in subsection (1)(b).

 

     Sec. 10l. (1) For each 12-month period beginning October 1,

 

1987, and each 12-month period thereafter, $2,000,000.00 shall be

 

returned from the distribution under section 10e(4)(a) by each

 

multicounty eligible authority created under the metropolitan

 

transportation authorities act of 1967, Act No. 204 of the Public

 

Acts of 1967, being sections 124.401 to 124.425 of the Michigan

 

Compiled Laws, organized or continued under the Detroit area

 

regional transportation authority act in terms of a credit to those

 

cities, villages, and townships within each transportation district

 

of the authority created under section 16a of Act No. 204 of the

 

Public Acts of 1967, being section 124.416a of the Michigan

 

Compiled Laws, which receiving credits under this section or

 

eligible to receive credits as of October 1, 2001 that apply to the

 

authority for the credit in accordance with procedures and

 

standards established by the authority, except as provided by

 

subsections (2) and (3). The return of money in terms of a credit

 

shall be based upon the population of each city, village, or

 

township within the authority.

 

     (2) For each 12-month period described in subsection (1), a

 

city, village, or township described in subsection (1) may apply to

 

the authority to use its credit for public transportation purposes

 

within the authority's jurisdiction. However, the money returned in

 

terms of a credit to any city, village, or township which that

 

provides public transportation service for that city, village, or

 

township shall be used exclusively toward reducing the operating

 

deficit of that service. Moreover, any Any service provided by the

 

city, township, or village utilizing the credit received pursuant

 

to under this section shall be operated by the authority returning

 

the money in terms of a credit on a contractual basis with each

 

city, village, or township or with a combination of cities,

 

villages, and townships. If a city, township, or village has not

 

applied to the authority to utilize its credit pursuant to this

 

subsection by the last day of the 12-month period, that

 

municipality's share of the money credited pursuant to subsection

 

(1) shall be used by the authority for an expenditure within the

 

county within which the city, village, or township lies.

 

     (3) A city, village, or township which that has applied for

 

and received approval from the authority for use of its credit

 

pursuant to subsection (2) shall have 1 year after the end of the

 

period in which the application was made to actually expend that

 

credit. A credit not actually expended by the city, village, or

 

township by the last day of the year after the end of the period in

 

which the application was made shall be used by the authority for

 

an expenditure within the county within which the city, village, or

 

township lies.

 

     (4) Notwithstanding any other section of this or any other

 

act, each authority authorized by this section to return money in

 

terms of a credit shall have the final decision as to what

 

constitutes a proper expenditure, a public transportation service,

 

or a public transportation purpose under subsections (2) and (3).

 

     (5) The expenditure of the amounts required to be expended

 

under subsections (2) and (3) shall not be conditioned on an

 

expenditure by a county in which the expenditure is required to be

 

expended.

 

     (6) The An authority shall retain the ability to coordinate

 

services between contracting cities, villages, and townships or

 

groups of cities, villages, or townships.

 

     (7) As used in this section, "operating deficit" means the

 

operating cost of a public transportation service less the revenues

 

generated by the service.

 

     Sec. 10n. (1) Funds from the comprehensive transportation fund

 

may be distributed to a trustee, or to the Michigan municipal bond

 

authority as created under the shared credit rating act, 1985 PA

 

227, MCL 141.1051 to 141.1076, that is authorized to receive the

 

funds under a borrowing resolution adopted by an eligible

 

authority. The issuance of the notes of an eligible authority in

 

anticipation of payment of proceeds from the comprehensive

 

transportation fund shall be authorized by a borrowing resolution

 

of the eligible authority under the metropolitan transportation

 

authorities act of 1967, 1967 PA 204, MCL 124.401 to 124.426, or

 

the Detroit area regional transportation authority act. The

 

issuance of the notes under this section is not subject to the

 

revised municipal finance act, 2001 PA 34, MCL 141.2101 to

 

141.2821, and shall be subject to the prior approval of the state

 

transportation commission. Failure of the commission to take action

 

within 35 days after receipt of notification from the eligible

 

authority of intent to issue the notes, constitutes approval by the

 

state transportation commission. The eligible authority may only

 

issue the notes in anticipation of funds to be received during its

 

current fiscal year at any time before the eligible authority's

 

receipt of the funds from the comprehensive transportation fund.

 

The principal amount of notes for which the funds to be received

 

from the comprehensive transportation fund are pledged shall not

 

exceed 85% of the amount remaining to be received by the eligible

 

authority from the comprehensive transportation fund in the current

 

fiscal year. The pledge of 100% of the funds the eligible authority

 

expects to receive from the comprehensive transportation fund shall

 

be secured by a direct transfer of the pledge funds from the

 

comprehensive transportation fund to the trustee or the Michigan

 

municipal bond authority that is authorized to receive the funds by

 

the borrowing resolution adopted by the eligible authority. The

 

notes of the eligible authority shall not be in any way a debt or a

 

liability of the state and shall not create or constitute any

 

indebtedness, liability, or obligations of the state or be or

 

constitute a pledge of the full faith and credit of the state. Each

 

note shall contain on its face a statement to the effect that the

 

eligible authority is obligated to pay the principal of and the

 

interest on the note only from funds of or due to the eligible

 

authority and that this state is not obligated to pay that

 

principal or interest and that neither the faith in credit nor the

 

taxing power of this state is pledged to the payment of the

 

principal of or the interest on the note. The notes shall mature

 

not more than 13 months from the date of issuance, shall bear

 

interest at a fixed or variable rate or rates of interest per

 

annum, and, in addition to other security required by this section,

 

may be secured by letter or line of credit issued by a financial

 

institution or as provided in the borrowing resolution.

 

     (2) The issuance of notes under this section is subject to the

 

agency financing reporting act, 2002 PA 470, MCL 129.171 to

 

129.177.

 

     Enacting section 1. This amendatory act takes effect October

 

1, 2010.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No. 1031                                       

 

          of the 95th Legislature is enacted into law.