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SB-1192, As Passed Senate, May 10, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1192

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,"

(MCL 247.651 to 247.675) by adding section 11f.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 11f. (1) Funds received under the local federal match

program created in section 11e shall be granted to local

municipalities and other local road agencies to match federal aid

projects as provided in this subsection. Projects shall be

submitted to the state transportation department by the local

municipality or other local road agency. The department shall

review the submittals and apply criteria that take into account the

needs of highway, road, and street systems and an equitable

allocation of available funds considering the geographic location

of the proposed project. If the projects meet the criteria, the

state transportation department shall award grants to the extent of

available funds. An individual grant shall not exceed 25% of the

amount of federal funds available for the project. Projects

selected for funding shall meet all of the following criteria:

(a) The project shall be under construction or let for bid no

later than September 30, 2007.

(b) The applicant shall have identified all of the necessary

funding to complete the project.

construction, or reconstruction of a federal aid eligible road or

street, including the work incidental to that opening, widening,

improving, construction, or reconstruction.

(2) All bond proceeds not used to fund grants awarded by

September 30, 2007 are appropriated for the purposes described in

section 11(1)(f).

(3) Beginning February 1, 2007, the department shall submit a

written report to the legislature by each February 1 containing all

of the following information:

(a) The balance contained in the program.

(b) A list of all projects currently funded under the program.

funding under the program.

(d) A list of pending requests for funding under the program,

if any.

(4) The department shall submit a written report to the

legislature no later than 30 days after the program has expended

$40,000,000.00. The report shall contain all of the following:

(a) A list of all projects currently funded under the program.

(b) A list of federal high priority projects eligible to

receive funding from the program.

if any.

(5) The department shall provide additional criteria if

Senate Bill No. 1192 (H-2) as amended May 4, 2006

necessary for selecting the remaining projects to be funded in a

fiscal year no later than 30 days after the report required under

subsection (4) is issued. In determining the additional criteria to

apply to the remaining funds, the department shall consult with

interested local road agencies, the Michigan municipal league, and

the county road association of Michigan and shall utilize any

recommendations made on additional criteria by these entities

unless the department determines that the additional criteria are

inequitable or impractical. [IF THE ADDITIONAL CRITERIA ARE DEEMED

INEQUITABLE OR IMPRACTICAL, THE DEPARTMENT IS DIRECTED TO WORK WITH THE INTERESTED PARTIES TO DEVELOP EQUITABLE AND PRACTICAL CRITERIA.] The department shall apply those

criteria that most equitably distribute the remaining funds

considering the geographic location of the funded projects. In

applying criteria, the department shall take into account the needs

of highway, road, and street systems and an equitable allocation of

available funds considering the geographic location of the funded

project.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

(a) Senate Bill No. 1132.

(b) House Bill No. 6003.