SB-0539, As Passed House, July 17, 2003

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 539

                                                                             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, critical 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 10 (MCL 247.660), as amended by 2000 PA 188.            

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 10.  (1) A fund to be known as the Michigan

2   transportation fund is established and shall be set up and                  

3   maintained in the state treasury as a separate fund.  Money                 

4   received and collected under  1927 PA 150, MCL 207.101 to                   

5   207.202 the motor fuel tax act, 2000 PA 403, MCL 207.1001 to               

6   207.1170, except a license fee provided in that act, and a tax,             

7   fee, license, and other money received and collected under                  

8   sections 801 to 810 of the Michigan vehicle code, 1949 PA 300,              

9   MCL 257.801 to 257.810, except a truck safety fund fee provided             

10  in section 801(1)(k) of the Michigan vehicle code, 1949 PA 300,             

11  MCL 257.801, and money received under the motor carrier act, 1933           

12  PA 254, MCL 475.1 to 479.43, shall be deposited in the state                

13  treasury to the credit of the Michigan transportation fund.  In             

14  addition, income or profit derived from the investment of money             

15  in the Michigan transportation fund shall be deposited in the               

16  Michigan transportation fund.  Except as provided in this act, no           

1   other money, whether appropriated from the general fund of this             

2   state or any other source, shall be deposited in the Michigan

3   transportation fund.  Except as otherwise provided in this                  

4   section, the legislature shall appropriate funds for the                    

5   necessary expenses incurred in the administration and enforcement           

6   of  1927 PA 150, MCL 207.101 to 207.202 the motor fuel tax act,            

7   2000 PA 403, MCL 207.1001 to 207.1170, the motor carrier act,

8   1933 PA 254, MCL 475.1 to 479.43, and sections 801 to 810 of the            

9   Michigan vehicle code, 1949 PA 300, MCL 257.801 to 257.810.                 

10  Funds appropriated for necessary expenses shall be based upon               

11  established cost allocation methodology that reflects actual                

12  costs.   Beginning with the fiscal year ending September 30, 1998

13  and the next 2 succeeding fiscal years thereafter, funds                    

14  appropriated for these administrative expenses for all state                

15  agencies and departments, other than the department, the                    

16  commission, the department of environmental quality expedited               

17  permit processing program for road agencies, the department of              

18  state, and the attorney general shall be phased out until further           

19  funds are no longer appropriated for this purpose.

20  Appropriations for the necessary expenses incurred by the                   

21  department of state in administration and enforcement of sections           

22  801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL 257.801           

23  to 257.810, shall be made from the Michigan transportation fund             

24  and from funds in the transportation administration collection              

25  fund created in section 810b of the Michigan vehicle code, 1949             

26  PA 300, MCL 257.810b.  Appropriations from the Michigan

27  transportation fund for the necessary expenses incurred by                  

Senate Bill No. 539 (H-3) as amended July 17, 2003    (1 of 2)

1   department of state in administration and enforcement of sections           

2   801 to 810 of the Michigan vehicle code, 1949 PA 300, MCL 257.801           

3   to 257.810, shall not exceed $20,000,000.00 per state fiscal                

4   year. All money in the Michigan transportation fund is                      

5   apportioned and appropriated in the following manner:                       

6       (a) Not more than $3,000,000.00 as may be annually                          

7   appropriated each fiscal year to the state trunk line fund for              

8   subsequent deposit in the rail grade crossing account.                      

9       (b) Not less than $3,000,000.00 each year to the critical                   

10  bridge fund established in section 11b for the purpose of payment           

11  of the principal, interest, and redemption premium on any notes             

12  or bonds issued by the state transportation commission under                

13  section 11b.                                                                

14      (c) Revenue from 3 cents of the tax levied under section [8 of the

15  motor fuel tax act, 2000 PA 403, MCL 207.1008], to the state trunk line fund, county

16  road commissions, and cities and villages in the percentages                

17  provided in subdivision (i).                                                

18      (d) [Revenue Before October 1, 2004, all the revenue] from 1 cent of the tax levied under section [8 of the motor

19  fuel tax act, 2000 PA 403, MCL 207.1008] to the state trunk line fund for   

20  repair of state bridges under section 11.  [On and after October 1, 2004, 1/2 the revenue from 1 cent of the tax levied under section 8 of the motor fuel tax act, 2000 PA 403, MCL 207.1008, to the state trunk line fund for repair of state bridges under section 11 and 1/2 of the revenue from 1 cent of the tax levied under section 8 of the motor fuel tax act, 2000 PA 403, MCL 207.1008, to the critical bridge fund created under section 11b.]

21      (e) $43,000,000.00 to the state trunk line fund for debt                    

22  service costs on state of Michigan projects.                                

23      (f) [Except as provided in subsection (4),] 10% to the comprehensive transportation fund for the                                                     

24  purposes described in section 10e.                                          

25      (g) $36,775,000.00 to the state trunk line fund for                         

26  subsequent deposit in the transportation economic development               

27  fund, and, as of September 30, 1997, with first priority for                

1   allocation to debt service on bonds issued to fund transportation           

2   economic development fund projects.  In addition, beginning                 

3   October 1, 1997, $3,500,000.00 is appropriated from the Michigan

4   transportation fund to the state trunk line fund for subsequent             

5   deposit in the transportation economic development fund to be               

6   used for economic development road projects in any of the                   

7   targeted industries described in section 9(1)(a) of 1987 PA 231,            

8   MCL 247.909.                                                                

9       (h) Not less than $33,000,000.00 as may be annually                         

10  appropriated each fiscal year to the local program fund created             

11  in section 11e.                                                             

12      (i) The balance of the Michigan transportation fund as                      

13  follows, after deduction of the amounts appropriated in                     

14  subdivisions (a) through (h) and section 11b:                               

15                                                                               (i) 39.1% to the state trunk line fund for the purposes                             

16  described in section 11.                                                    

17      (ii) 39.1% to the county road commissions of the state.                      

18      (iii) 21.8% to the cities and villages of the state.                         

19      (2) The money appropriated pursuant to this section shall be                

20  used for the purposes as provided in this act and any other                 

21  applicable act.  Subject to the requirements of section 9b, the             

22  department shall develop programs in conjunction with the                   

23  Michigan state chamber of commerce and the Michigan minority                

24  business development council to assist small businesses,                    

25  including those located in enterprise zones and those located in            

26  empowerment zones as determined under federal law, as defined by            

27  law in becoming qualified to bid.                                           

Senate Bill No. 539 (H-3) as amended July 17, 2003

1       (3) Thirty-one and one-half percent of the funds appropriated               

2   to this state from the federal government pursuant to 23                    

3   U.S.C. 157, commonly known as minimum guarantee funds, shall be             

4   allocated to the transportation economic development fund, if               

5   such an allocation is consistent with federal law.  These funds             

6   shall be distributed 16-1/2% for development projects for rural             

7   counties as defined by law and 15% for capacity improvement or              

8   advanced traffic management systems in urban counties as defined            

9   by law.  Federal funds allocated for distribution under this                

10  section shall be eligible for obligation and use by all                     

11  recipients as defined by the transportation equity act for the              

12  21st century, Public Law 105-178, 112 Stat. 107.                            

[(4) For the fiscal year beginning October 1, 2003 only, the apportionment of 10% of Michigan transportation fund money to the comprehensive transportation fund as provided in subsection (1)(f) shall be reduced by $10,000,000.00 and the $10,000,000.00 shall be transferred to the state trunk line fund for capacity improvements to state trunk line highways.]

13      Enacting section 1.  This amendatory act does not take                      

14  effect unless Senate Bill No. 554 of the 92nd Legislature is                

15  enacted into law.                                                           

16      Enacting section 2.  This amendatory act takes effect                       

17  October 1, 2003.