SENATE BILL No. 539

 

 

June 4, 2003, Introduced by Senators GILBERT, JOHNSON, GOSCHKA and KUIPERS and referred to the Committee on Appropriations.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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.  Funds for the           

                                                                                

20  necessary expenses incurred by the department of state and the              

                                                                                

21  department of treasury in the administration and enforcement of             

                                                                                

22  the motor fuel tax act, 2000 PA 403, MCL 207.1001 to 207.1170,              

                                                                                

23  the motor carrier act, 1933 PA 54, MCL 475.1 to 479.43, and                 

                                                                                

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

                                                                                

25  MCL 257.801 to 257.810, shall be appropriated from funds in the             

                                                                                

26  transportation administration collection fund created in section            

                                                                                

27  810b of the Michigan vehicle code, 1949 PA 300, MCL 257.810b. All           


                                                                                

1   money in the Michigan transportation fund is apportioned and                

                                                                                

2   appropriated in the following manner:                                       

                                                                                

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

                                                                                

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

                                                                                

5   subsequent deposit in the rail grade crossing account.                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   or bonds issued by the state transportation commission under                

                                                                                

10  section 11b.                                                                

                                                                                

11      (c) Revenue from 3 cents of the tax levied under section 2(1)               

                                                                                

12  of 1950 PA 127, MCL 207.102, to the state trunk line fund, county           

                                                                                

13  road commissions, and cities and villages in the percentages                

                                                                                

14  provided in subdivision (i).                                                

                                                                                

15      (d) Revenue from 1 cent of the tax levied under section 2(1)                

                                                                                

16  of 1950 PA 127, MCL 207.102, to the state trunk line fund for               

                                                                                

17  repair of state bridges under section 11.                                   

                                                                                

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

                                                                                

19  service costs on state of Michigan projects.                                

                                                                                

20      (f) 10% to the comprehensive transportation fund for the                    

                                                                                

21  purposes described in section 10e.                                          

                                                                                

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

                                                                                

23  subsequent deposit in the transportation economic development               

                                                                                

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

                                                                                

25  allocation to debt service on bonds issued to fund transportation           

                                                                                

26  economic development fund projects.  In addition, beginning                 

                                                                                

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


                                                                                

1   transportation fund to the state trunk line fund for subsequent             

                                                                                

2   deposit in the transportation economic development fund to be               

                                                                                

3   used for economic development road projects in any of the                   

                                                                                

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

                                                                                

5   MCL 247.909.                                                                

                                                                                

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

                                                                                

7   appropriated each fiscal year to the local program fund created             

                                                                                

8   in section 11e.                                                             

                                                                                

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

                                                                                

10  follows, after deduction of the amounts appropriated in                     

                                                                                

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

                                                                                

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

                                                                                

13  described in section 11.                                                    

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

19  department shall develop programs in conjunction with the                   

                                                                                

20  Michigan state chamber of commerce and the Michigan minority                

                                                                                

21  business development council to assist small businesses,                    

                                                                                

22  including those located in enterprise zones and those located in            

                                                                                

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

                                                                                

24  law in becoming qualified to bid.                                           

                                                                                

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

                                                                                

26  to this state from the federal government pursuant to 23                    

                                                                                

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


                                                                                

1   allocated to the transportation economic development fund, if               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

5   advanced traffic management systems in urban counties as defined            

                                                                                

6   by law.  Federal funds allocated for distribution under this                

                                                                                

7   section shall be eligible for obligation and use by all                     

                                                                                

8   recipients as defined by the transportation equity act for the              

                                                                                

9   21st century, Public Law 105-178, 112 Stat. 107.                            

                                                                                

10      Enacting section 1.  This amendatory act does not take                      

                                                                                

11  effect unless Senate Bill No. _____ or House Bill No. _____                 

                                                                                

12  (request no. 03623'03) of the 92nd Legislature is enacted into              

                                                                                

13  law.