Bill Text: MI SB1103 | 2019-2020 | 100th Legislature | Enrolled
Bill Title: Transportation: funds; depositing funds from marihuana tax into Michigan transportation fund; allow. Amends sec. 10 of 1951 PA 51 (MCL 247.660).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2020-10-21 - Assigned Pa 0222'20 With Immediate Effect [SB1103 Detail]
Download: Michigan-2019-SB1103-Enrolled.html
state of michigan
100th Legislature
Regular session of 2020
Introduced by Senator
Hertel
ENROLLED SENATE BILL No. 1103
AN ACT 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; to investigate and study the tolling of roads, streets, highways, or bridges; and to repeal acts and parts of acts,” by amending section 10 (MCL 247.660), as amended by 2018 PA 471.
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 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 must 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, must 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, must
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 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 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 created in section 2 of 1987 PA 231, MCL 247.902, 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 created in section 2 of 1987 PA 231, MCL 247.902 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 well as funds allocated to the Michigan
transportation fund and collected under the Michigan Regulation and Taxation of
Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967, 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 under this section must be used
for the purposes as provided in this act and any other applicable act. Subject
to 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) From federal
funds, an amount equal to 31-1/2% of the money formerly
appropriated to this state from the federal government under former
23 USC 157, commonly known as minimum guarantee funds, must
be allocated to the transportation economic development fund,
if the allocation is consistent with federal law. This money must 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 must 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 must consist of 6 voting members
appointed by the state transportation commission and 2 nonvoting members
appointed by the department. The board must 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 must 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 must
be appointed for 2 years. The chairperson of the board must
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 must be distributed by the board to the regional bridge councils
created under this section. One regional council must be formed for each department of transportation region as
those regions exist on October 1, 2004. The regional councils must 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 must be
distributed among the regional bridge councils according to all of the
following ratios, which must 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 must 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 must 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)(i) must 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 must 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
must be administered through the
department’s local bridge program.
Secretary of the Senate
Clerk of the House of Representatives
Approved___________________________________________
____________________________________________________
Governor
