December 7, 2017, Introduced by Rep. VerHeulen and referred to the Committee on Transportation and Infrastructure.


     A bill to create the Michigan infrastructure council; and to


prescribe the powers and duties of certain state and local agencies


and officials.




     Sec. 1. This act shall be known and may be cited as the


"Michigan infrastructure council act".


     Sec. 2. As used in this act:


     (a) "Asset" means infrastructure related to water,


transportation, energy, or communications, including, but not


limited to, water supply systems, sewer systems, drains and


stormwater systems, roads, bridges, broadband and communication


systems, and electricity and natural gas networks.


     (b) "Asset class" means a single type of asset including its


network and all associated appurtenances critical to its



     (c) "Asset management" means an ongoing process of


maintaining, preserving, upgrading, and operating physical assets


cost-effectively, based on a continuous physical inventory and


condition assessment and investment to achieve performance goals.


     (d) "Asset management plan" means a set of procedures to


manage assets through their life cycles, based on principles of


life cycle costing. An asset management plan may be used as a tool


to help an asset owner implement its asset management program.


     (e) "Asset owner" means a person that owns or operates an




     (f) "Council" means the Michigan infrastructure council


created in section 3.


     (g) "Department" means the department of treasury.


     (h) "Performance goals" means standards of system performance


that reflect asset management principles for asset preservation and


sustainability, operations, capacity consistent with local needs,


and identified levels of service.


     (i) "Person" means an individual, partnership, corporation,


association, governmental entity, or other legal entity.


     (j) "Region" means the geographic jurisdiction of any of the




     (i) A regional planning commission created pursuant to 1945 PA


281, MCL 125.11 to 125.25.


     (ii) A regional economic development commission created


pursuant to 1966 PA 46, MCL 125.1231 to 125.1237.


     (iii) A metropolitan area council formed pursuant to the

metropolitan councils act, 1989 PA 292, MCL 124.651 to 124.729.


     (iv) A metropolitan planning organization established pursuant


to federal law.


     (v) An agency directed and funded by section 822f of article


VIII of 2016 PA 268, to engage in joint decision-making practices


related, but not limited to, community development, economic


development, talent, and infrastructure opportunities.


     (k) "Transportation asset management council" means the


transportation asset management council created in section 9a of


1951 PA 51, MCL 247.659a.


     (l) "Water asset management council" means the water asset


management council created in section 5002 of the natural resources


and environmental protection act, 1994 PA 451, MCL 324.5002.


     Sec. 3. (1) The Michigan infrastructure council is created


within the department.


     (2) The council consists of the following:


     (a) Nine voting members appointed pursuant to subsection (3)


who are representative of 1 or more of the following:


     (i) Asset management experts from the public and private


sectors with knowledge of and expertise in the areas of planning,


design, construction, management, operations and maintenance for


transportation, water, energy, and communications.


     (ii) Financial and procurement experts from the public or


private sector.


     (iii) Experts in regional asset management planning across


jurisdictions and infrastructure sectors.


     (b) The following nonvoting members:

     (i) The chairperson of the water asset management council or


his or her designee.


     (ii) The chairperson of the transportation asset management


council or his or her designee.


     (iii) The director of the department of technology,


management, and budget or his or her designee.


     (iv) The director of the state transportation department or


his or her designee.


     (v) The director of the department of environmental quality or


his or her designee.


     (vi) The director of the department of natural resources or


his or her designee.


     (vii) The state treasurer or his or her designee.


     (viii) The chairperson of the Michigan public service


commission or his or her designee.


     (3) Voting members of the council under subsection (2)(a)


shall be appointed as follows:


     (a) Five by the governor.


     (b) One by the senate majority leader.


     (c) One by the speaker of the house of representatives.


     (d) One by the senate minority leader.


     (e) One by the house minority leader.


     (4) The voting members first appointed to the council must be


appointed within 60 days after the effective date of this act.


     (5) The voting members of the council serve for terms of 3


years or until a successor is appointed, whichever is later, except


as follows:

     (a) Of the members first appointed under subsection (3)(a), 1


shall serve for 2 years, 1 shall serve for 1 year, and 3 shall


serve for 3 years.


     (b) Of the members first appointed under subsection (3)(b),


(c), (d), and (e), 2 shall serve for 2 years and 2 shall serve for


1 year.


     (6) A vacancy on the council shall be filled for the unexpired


term in the same manner as the original appointment.


     (7) A member of the council may be recommended for removal for


incompetence, dereliction of duty, malfeasance during his or her


tenure in office, or any other cause considered appropriate by the


chairperson of the council.


     (8) The governor shall call the first meeting of the council


within 90 days after the effective date of this act. At the first


meeting, the council shall elect from among its members a


chairperson and other officers as it considers appropriate. After


the first meeting, the council shall meet at least quarterly, or


more frequently at the call of the chairperson or if requested by 3


or more members.


     (9) A majority of the voting members of the council and a


majority of the nonvoting members of the council constitute a


quorum for the transaction of business at a meeting of the council.


An affirmative vote of a majority of the voting members of the


council is required for official action of the council.


     (10) The council shall perform its business at a public


meeting of the council held in compliance with the open meetings


act, 1976 PA 267, MCL 15.261 to 15.275.

     (11) A writing prepared, owned, used, in the possession of, or


retained by the council in the performance of an official function


is subject to the freedom of information act, 1976 PA 442, MCL


15.231 to 15.246.


     (12) Members of the council serve without compensation.


However, members of the council may be reimbursed for their actual


and necessary expenses incurred in the performance of their


official duties as members of the council.


     (13) The departments of technology, management, and budget;


transportation; environmental quality; natural resources; and


treasury shall provide qualified administrative and technical staff


to the council.


     (14) The department of technology, management, and budget


shall serve as the central data storage agency for the statewide


database provided for in this act.


     Sec. 4. The council shall do all of the following:


     (a) Develop a multiyear program, work plan, budget, and


funding recommendation for asset management; update these every


year; and provide these to the governor and the legislature by


September 30 every year.


     (b) Ensure that the work plan in subdivision (a) includes an


emphasis on coordination and integration across asset classes and




     (c) Prepare an annual report on the current statewide asset


management assessment that tracks progress on established


performance goals.


     (d) Undertake research and advise on matters relating to asset

management, including all of the following:


     (i) Funding and financing models.


     (ii) Best practices.


     (iii) Information technology advancements.


     (iv) Emerging technology to advance smart systems.


     (v) Right sizing and cost-efficiencies.


     (vi) Impediments to delivery.


     (vii) Opportunities for greater coordination and collaboration


across asset classes and asset owners.


     (viii) Align and link state incentives to asset performance


improvement goals, including cost control, asset management,


operational efficiency, and cost-effective regional solutions.


     (e) Within 180 days after its first meeting, evaluate the


regional infrastructure asset management pilot program created


under Executive Directive 2017-1, and the findings of the 21st


Century Infrastructure Commission created in Executive Order No.


2016-5, and develop and publish a 3-year strategy for establishing


a statewide integrated asset management system. The initial


multiyear program, work plan, budget, and funding recommendation


under subdivision (a) must include development of the strategy for


establishing a statewide integrated asset management system. The


strategy must also include, at a minimum, all of the following:


     (i) A determination of appropriate assets within the asset




     (ii) Consistent data standards and definitions for each asset




     (iii) Identify and designate a process to plan, analyze, and

coordinate asset management across assets and asset owners at the


regional level. This process may be implemented through regional


planning agencies, the regional prosperity initiative regions, or


another approach, which may vary among regions, that ensures all


areas of the state are included and efforts are consistent with


state and federal requirements. Regions shall be responsible for


maintaining and managing the statewide database at a regional




     (iv) Procedures for data storage, collecting, updating, and




     (v) Recommendations related to the appropriate level of


financial support for local asset data collection, local


development of asset management plans, regional review and


collaboration, and participation in an integrated statewide asset


management system.


     (vi) A process to coordinate the planning efforts of the


transportation asset management council, the water asset management


council, the Michigan public service commission, and the Michigan


economic development corporation, with other state-required asset


management planning requirements.


     (vii) Coordination with the transportation asset management


council and the water asset management council to ensure that


training and education programs that address all of the following


are coordinated across assets:


     (A) Asset management principles and plan development.


     (B) The use of the statewide database.


     (C) Ongoing user support.

     (D) State department asset management requirements.


     (viii) Develop statewide performance goals for appropriate


assets within each asset class and identify regional and statewide


progress toward meeting performance goals.


     (ix) Protocols that ensure data security and accuracy at the


local, regional, and state levels.


     (x) Development of consistent and coordinated state


department, transportation asset management council, and water


asset management council asset management plan components and


requirements including, but not limited to:


     (A) Asset inventory, condition assessment, and uniform data.


     (B) Performance goals.


     (C) Revenue structure, investment strategy, and capital


improvement plan.


     (D) Asset criticality and risk analysis.


     (E) Public engagement and transparency.


     (F) Self-assessment of asset management maturity.


     (G) Reports at an asset owner, regional, and statewide level.


Reporting levels should take into account the size and complexity


of the network or system. Priority should be placed on the largest




     (H) A resolution by the appropriate governing body approving


the plan.


     (I) Certification that asset management is being coordinated


to the asset owners' best ability across asset classes and




     (f) Beginning 3 years after the effective date of this act,

start the second phase of the statewide system for asset management


implementation and include, at a minimum, all of the following:


     (i) Predictive analytics to forecast asset condition.


     (ii) A public dashboard of state, regional, and local system


performance across asset classes, including the appropriate and


secure level of geospatial data and aggregated reporting.


     (iii) Develop and publish a 30-year integrated infrastructure


strategy that is updated every 5 years and includes all of the




     (A) Current statewide condition assessment and infrastructure


priorities across asset classes, tracked progress on established


performance goals, and net changes in asset value.


     (B) Investment needs to reach targeted overall system ratings


and performance goals, with a goal of leveling annual investments


to long-term predictable amounts.


     (C) Network intelligence in asset management planning and


monitoring. Retrofit technologies should be considered, pursued,


and incorporated as they become available for upgrades and


maintenance activities to existing and future assets.


     Sec. 6. Funding necessary to support the activities described


in this act shall be provided through funds as provided by law.


     Enacting section 1. This act does not take effect unless all


of the following bills of the 99th Legislature are enacted into




     (a) Senate Bill No.____ or House Bill No.____ (request no.




     (b) Senate Bill No.____ or House Bill No.____ (request no.