HOUSE BILL No. 5396 November 1, 2001, Introduced by Rep. Julian 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 clas- sification; 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 trans- portation 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 pur- poses; to set up and establish the Michigan truck safety commis- sion; to establish certain standards for road contracts for cer- tain businesses; to provide for the continuing review of trans- portation needs within the state; to authorize the state trans- portation 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 appropria- tions and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to pro- vide 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 02669'01 TJS 2 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 submis- sion 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 offi- cials; to provide for the making of loans for transportation pur- poses 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 9a (MCL 247.659a), as amended by 1998 PA 308. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 9a.(1) By October 1, 1998, the governor shall2appoint not more than 5 persons who shall serve as a study com-3mittee to review transportation funding options, transportation4investment priorities, and potential strategies for maximizing5returns on transportation investments. The appointments shall be6subject to the advice and consent of the senate. The committee7shall include at least 1 representative of the following8interests:9(a) Manufacturing.10(b) Commerce.11(c) Agriculture.12(d) Tourism.13(e) Labor.14(2) Beginning October 1, 1998, the committee shall also15include the majority and minority leaders of the senate or a16member of the senate designated by each leader and the speaker02669'01 3 1and minority leader of the house of representatives or a member2of the house of representatives designated by each leader.3(3) By January 1, 1999, the legislative auditor general4shall review and comment on the data developed by the department5under subsection (5) in order to assist the citizens advisory6committee.7(4) A citizens advisory committee shall be created to8receive and comment upon all reports, studies, and recommenda-9tions prepared by the various designated technical subcommittees10of the citizens advisory committee before but not later than the11submission of the reports, studies, and recommendations to the12study committee. The members of the citizens advisory committee13shall be given sufficient time and opportunity to provide members14of the study committee their majority, minority, or individual15views of the reports, studies, and recommendations of the various16designated technical subcommittees. The governor shall appoint17not more than 24 persons, who shall serve as a citizens advisory18committee and shall include at least 1 representative from a list19of 3 recommendations supplied by each organization of the follow-20ing organizations:21(a) Michigan farm bureau.22(b) Michigan trucking association.23(c) Michigan association of counties.24(d) Michigan townships association.25(e) Michigan state chamber of commerce.26(f) Michigan tourist association.02669'01 4 1(g) County road association of Michigan.2(h) Michigan public transit association.3(i) Michigan association of railroads.4(j) Michigan municipal league.5(k) Michigan motor bus association.6(l) Area agency for aging.7(m) Michigan association of railroad passengers.8(n) Nonmotorized advisory commission.9(o) Michigan association of airport executives.10(p) American association of aviation businesses.11(q) American association of retired persons.12(r) Michigan council for independent living.13(s) Associated underground contractors of Michigan.14(t) Asphalt pavers association of Michigan.15(u) Michigan concrete pavers association.16(5) The state transportation department shall provide quali-17fied staff, needs, technical oversight, and fiscal analysis sub-18committees, and provide by September 30, 1998, a recommended work19program to the study committee to enable the committee to carry20out its functions.21(6) By a majority vote of the study committee, the committee22shall report to the governor, the state transportation commis-23sion, and the legislature on the identified capital and mainte-24nance needs, transportation investment and maintenance priori-25ties, relative use of transportation systems, responsibilities26for the identified needs including economic development needs,27transportation funding options, historical transportation02669'01 5 1financing patterns as they relate to total statewide fiscal2resources, and strategies for maximizing the returns on transpor-3tation investments. All studies and reports relating to highways4shall be reported according to functional and legal5classification. The committee shall publish a preliminary report6of the data and findings by January 1, 2000. The committee,7after holding appropriate public hearings, shall recommend, if it8considers it necessary, alterations of formulas for transporta-9tion funding and alterations to the distributions of transporta-10tion responsibilities by July 1, 2000. The report and recommen-11dations shall also include any positions which a minority of the12study committee support.13 (1) AS USED IN THIS SECTION: 14 (A) "ASSET MANAGEMENT" MEANS AN ONGOING PROCESS OF MAINTAIN- 15 ING, UPGRADING, AND OPERATING PHYSICAL ASSETS COST-EFFECTIVELY, 16 BASED ON A CONTINUOUS PHYSICAL INVENTORY AND CONDITION 17 ASSESSMENT. 18 (B) "BRIDGE" MEANS A STRUCTURE INCLUDING SUPPORTS ERECTED 19 OVER A DEPRESSION OR AN OBSTRUCTION, SUCH AS WATER, A HIGHWAY, OR 20 A RAILWAY, FOR THE PURPOSES OF CARRYING TRAFFIC OR OTHER MOVING 21 LOADS, AND HAVING AN OPENING MEASURING ALONG THE CENTER OF THE 22 ROADWAY OF MORE THAN 20 FEET BETWEEN UNDERCOPINGS OF ABUTMENTS OR 23 SPRING LINES OF ARCHES, OR EXTREME ENDS OF OPENINGS FOR MULTIPLE 24 BOXES WHERE THE CLEAR DISTANCE BETWEEN OPENINGS IS LESS THAN 1/2 25 OF THE SMALLER CONTIGUOUS OPENING. 02669'01 6 1 (C) "CENTRAL STORAGE DATA AGENCY" MEANS THAT AGENCY OR 2 OFFICE CHOSEN BY THE COUNCIL WHERE THE DATA COLLECTED IS STORED 3 AND MAINTAINED. 4 (D) "COUNCIL" MEANS THE TRANSPORTATION ASSET MANAGEMENT 5 COUNCIL CREATED BY THIS SECTION. 6 (E) "DEPARTMENT" MEANS THE STATE TRANSPORTATION DEPARTMENT. 7 (F) "FEDERAL-AID ELIGIBLE" MEANS ANY PUBLIC ROAD OR BRIDGE 8 THAT IS ELIGIBLE FOR FEDERAL AID TO BE SPENT FOR THE CONSTRUC- 9 TION, REPAIR, OR MAINTENANCE OF THAT ROAD OR BRIDGE. 10 (G) "LOCAL ROAD AGENCY" MEANS A COUNTY ROAD COMMISSION OR 11 DESIGNATED COUNTY ROAD AGENCY OR CITY OR VILLAGE THAT IS RESPON- 12 SIBLE FOR THE CONSTRUCTION OR MAINTENANCE OF PUBLIC ROADS WITHIN 13 THE STATE UNDER THIS ACT. 14 (H) "MULTI-YEAR PROGRAM" MEANS A COMPILATION OF ROAD AND 15 BRIDGE PROJECTS ANTICIPATED TO BE CONTRACTED FOR BY THE DEPART- 16 MENT OR A LOCAL ROAD AGENCY DURING A 3-YEAR PERIOD. 17 (2) IN ORDER TO PROVIDE A COORDINATED, UNIFIED EFFORT BY THE 18 VARIOUS ROADWAY AGENCIES WITHIN THE STATE, THE TRANSPORTATION 19 ASSET MANAGEMENT COUNCIL IS HEREBY CREATED WITHIN THE STATE 20 TRANSPORTATION COMMISSION AND IS CHARGED WITH ADVISING THE COM- 21 MISSION ON A STATEWIDE ASSET MANAGEMENT STRATEGY AND THE PRO- 22 CESSES AND NECESSARY TOOLS NEEDED TO IMPLEMENT SUCH A STRATEGY ON 23 THE FEDERAL-AID ELIGIBLE HIGHWAY SYSTEM, IN A COST-EFFECTIVE, 24 EFFICIENT MANNER. NOTHING IN THIS SECTION SHALL PROHIBIT A LOCAL 25 ROAD AGENCY FROM USING AN ASSET MANAGEMENT PROCESS ON ITS 26 NON-FEDERAL-AID ELIGIBLE SYSTEM. THE COUNCIL SHALL CONSIST OF 8 27 VOTING MEMBERS APPOINTED BY THE STATE TRANSPORTATION COMMISSION. 02669'01 7 1 THE COUNCIL SHALL INCLUDE 2 MEMBERS FROM THE COUNTY ROAD 2 ASSOCIATION OF MICHIGAN, 2 MEMBERS FROM THE MICHIGAN MUNICIPAL 3 LEAGUE, 2 MEMBERS FROM THE STATE PLANNING AND DEVELOPMENT 4 REGIONS, AND 2 MEMBERS FROM THE DEPARTMENT. EX OFFICIO MEMBERS 5 SHALL INCLUDE 1 PERSON FROM THE MICHIGAN TOWNSHIPS ASSOCIATION 6 AND 1 PERSON FROM THE AGENCY OR OFFICE SELECTED AS THE LOCATION 7 FOR CENTRAL DATA STORAGE. EACH AGENCY WITH VOTING RIGHTS SHALL 8 SUBMIT A LIST OF 6 NOMINEES TO THE STATE TRANSPORTATION COMMIS- 9 SION FROM WHICH THE APPOINTMENTS SHALL BE MADE. THE MICHIGAN 10 TOWNSHIPS ASSOCIATION SHALL SUBMIT A LIST OF 3 NAMES. NAMES 11 SHALL BE SUBMITTED WITHIN 30 DAYS AFTER THE EFFECTIVE DATE OF THE 12 2001 AMENDATORY ACT THAT AMENDED THIS SECTION. THE STATE TRANS- 13 PORTATION COMMISSION SHALL MAKE THE APPOINTMENTS WITHIN 30 DAYS 14 AFTER RECEIPT OF THE LISTS. 15 (3) THE POSITIONS FOR THE DEPARTMENT SHALL BE PERMANENT. 16 THE POSITION OF THE CENTRAL DATA STORAGE AGENCY SHALL BE EX OFFI- 17 CIO AND SHALL BE FOR AS LONG AS THE AGENCY CONTINUES TO SERVE AS 18 THE DATA STORAGE REPOSITORY. THE MEMBER FROM THE MICHIGAN TOWN- 19 SHIPS ASSOCIATION SHALL BE INITIALLY APPOINTED FOR 3 YEARS. OF 20 THE MEMBERS FIRST APPOINTED FROM THE COUNTY ROAD ASSOCIATION OF 21 MICHIGAN, THE MICHIGAN MUNICIPAL LEAGUE, AND THE STATE PLANNING 22 AND DEVELOPMENT REGIONS, 1 MEMBER OF EACH GROUP SHALL BE 23 APPOINTED FOR 2 YEARS AND 1 MEMBER OF EACH GROUP SHALL BE 24 APPOINTED FOR 3 YEARS. AT THE END OF THE INITIAL APPOINTMENT, 25 ALL TERMS SHALL BE FOR 3 YEARS. HOWEVER, AN INDIVIDUAL SHALL NOT 26 BE ELIGIBLE TO SERVE MORE THAN 6 YEARS. THE CHAIRPERSON SHALL BE 27 SELECTED FROM AMONG THE VOTING MEMBERS OF THE COUNCIL, BUT THE 02669'01 8 1 DEPARTMENT REPRESENTATIVES SHALL NOT BE ELIGIBLE FOR ELECTION TO 2 THAT POSITION. 3 (4) THE DEPARTMENT SHALL PROVIDE QUALIFIED STAFF AND TECHNI- 4 CAL ASSISTANCE TO THE COUNCIL. 5 (5) THE COUNCIL SHALL DEVELOP AND PRESENT TO THE STATE 6 TRANSPORTATION COMMISSION FOR APPROVAL WITHIN 90 DAYS AFTER THE 7 DATE OF THE FIRST MEETING SUCH PROCEDURES AND REQUIREMENTS AS ARE 8 NECESSARY FOR THE ADMINISTRATION OF THE ASSET MANAGEMENT 9 PROCESS. THIS SHALL, AT A MINIMUM, INCLUDE THE AREAS OF TRAIN- 10 ING, DATA STORAGE AND COLLECTION, REPORTING, DEVELOPMENT OF A 11 3-YEAR PROGRAM, BUDGETING AND FUNDING, AND OTHER ISSUES RELATED 12 TO ASSET MANAGEMENT THAT MAY ARISE FROM TIME TO TIME. ALL QUAL- 13 ITY CONTROL STANDARDS AND PROTOCOLS SHALL, AT A MINIMUM, BE CON- 14 SISTENT WITH ANY EXISTING FEDERAL REQUIREMENTS AND REGULATIONS 15 AND EXISTING GOVERNMENT ACCOUNTING STANDARDS. 16 (6) FUNDING NECESSARY TO SUPPORT THE ACTIVITIES DESCRIBED IN 17 THIS SECTION SHALL BE PROVIDED BY AN ANNUAL APPROPRIATION FROM 18 THE MICHIGAN TRANSPORTATION FUND TO THE STATE TRANSPORTATION 19 COMMISSION. 20 (7) THE DEPARTMENT AND EACH LOCAL ROAD AGENCY SHALL KEEP 21 ACCURATE AND UNIFORM RECORDS ON ALL ROAD AND BRIDGE WORK PER- 22 FORMED AND FUNDS EXPENDED FOR THE PURPOSES OF THIS SECTION, 23 ACCORDING TO THE PROCEDURES DEVELOPED BY THE COUNCIL. EACH ROAD 24 AGENCY SHALL ANNUALLY REPORT TO THE COUNCIL THE MILEAGE AND CON- 25 DITION OF THE ROAD AND BRIDGE SYSTEM UNDER THEIR JURISDICTION AND 26 THE RECEIPTS AND DISBURSEMENTS OF ROAD AND STREET FUNDS IN THE 27 MANNER PRESCRIBED BY THE COUNCIL, WHICH SHALL BE CONSISTENT WITH 02669'01 9 1 ANY CURRENT ACCOUNTING PROCEDURES. AN ANNUAL REPORT SHALL BE 2 PREPARED BY THE STAFF ASSIGNED TO THE COUNCIL REGARDING THE 3 RESULTS OF ACTIVITIES CONDUCTED DURING THE PRECEDING YEAR AND THE 4 EXPENDITURE OF FUNDS RELATED TO THE PROCESSES AND ACTIVITIES 5 IDENTIFIED BY THE COUNCIL. THE REPORT SHALL ALSO INCLUDE AN 6 OVERVIEW OF THE ACTIVITIES IDENTIFIED FOR THE SUCCEEDING YEAR. 7 THE COUNCIL SHALL SUBMIT THIS REPORT TO THE STATE TRANSPORTATION 8 COMMISSION BY DECEMBER 30 OF EACH YEAR. 02669'01 Final page. TJS