HOUSE BILL NO. 4674

May 24, 2019, Introduced by Reps. Afendoulis, Webber, Sheppard, Hernandez, Bollin, Howell, Green, Meerman, O'Malley, Leutheuser, Paquette, Eisen and Yaroch 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 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; and to repeal acts and parts of acts,"

(MCL 247.651 to 247.675) by adding section 10s.

the people of the state of michigan enact:

Sec. 10s. (1) The innovative transportation grant fund is created within the state treasury.

(2) 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.

(3) Money in excess of $10,000,000.00 in the fund at the close of the fiscal year shall lapse to the Michigan transportation fund created in section 10 to the same account or sub-account from which it came.

(4) The state transportation department shall be the administrator of the fund for auditing purposes.

(5) The money appropriated to the innovative transportation grant fund and the interest accruing to that fund shall be expended for the county and city grant program created in this section.

(6) The board shall provide grants to county road commissions and cities for road or street construction and maintenance projects using innovative materials as provided in section 10q.

(7) An application for a grant from the county and city grant program shall be made on a form approved by the board and shall contain the information required by the board. The board shall establish a review process for considering grant applications under this section.

(8) At least 50% of the funding for a project that receives a grant under this section shall be provided by the county or city that requests the grant. The board shall not award more than $1,000,000.00 in matching funds for each project that receives a grant under this section.

(9) In determining whether to provide a grant under this section, the board shall consider the use of innovative materials or methods as the most important criterion.

(10) The board may award no more than $10,000,000.00 in grants under this section each year.

(11) Grants awarded under this section may be used for 1 or more of the following:

(a) For the entire project, not just the differential in cost for the innovative material.

(b) For the same innovative material to multiple applicants and in different years.

(c) For corrective action for innovative materials that fail.

(12) Grant recipients must provide the board with all information the board requires to track the effectiveness of the innovative material and to report to the legislature.

(13) The board shall list each project that receives a grant under this section on its website.

(14) The department may use up to $500,000.00 each year from the fund to operate the fund and the county and city grant program created in this section.

(15) As used in this section:

(a) "Board" means the Michigan innovative transportation board created in section 10q.

(b) "Fund" means the innovative transportation grant fund created in subsection (1).

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect unless all of the following bills of the 100th Legislature are enacted into law:

(a) Senate Bill No.____ or House Bill No. 4672 (request no. 02387'19).

(b) Senate Bill No.____ or House Bill No. 4673 (request no. 02388'19).