June 10, 2014, Introduced by Reps. Townsend, Yonker, Victory, Farrington, Dianda, Schor, Driskell, Switalski, Cochran, Pagel, Lauwers, Zemke, Stallworth, Talabi, Irwin and Barnett and referred to the Committee on Transportation and Infrastructure.
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,"
by amending sections 11, 12, and 13 (MCL 247.661, 247.662, and
247.663), section 11 as amended by 2002 PA 639 and sections 12 and
13 as amended by 2012 PA 298.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) A fund to be known as the state trunk line fund
is
established and shall be set up and maintained in the state
treasury as a separate fund. The money deposited in the state trunk
line
fund is appropriated to the state transportation department
for the following purposes in the following order of priority:
(a) For the payment, but only from money restricted as to use
by section 9 of article IX of the state constitution of 1963, of
bonds, notes, or other obligations in the following order of
priority:
(i) For the payment of contributions pledged before July 18,
1979 and required to be made by the state highway commission or the
state transportation commission under contracts entered into before
July
18, 1979, under 1941 PA 205, MCL 252.51 to 252.64, which
contributions
have been pledged before July 18, 1979, for the
payment of the principal and interest on bonds issued under 1941 PA
205, MCL 252.51 to 252.64, for the payment of which a sufficient
sum is irrevocably appropriated.
(ii) For the payment of the principal and interest upon bonds
designated "State of Michigan, State Highway Commissioner, Highway
Construction Bonds, Series I", dated September 1, 1956, in the
aggregate
principal amount of $25,000,000.00, issued pursuant to
under former 1955 PA 87 and the resolution of the state
administrative board adopted August 6, 1956, for the payment of
which a sufficient sum is irrevocably appropriated.
(iii) For the payment of the principal and interest on bonds
issued under section 18b for transportation purposes other than
comprehensive transportation purposes as defined by law and the
payment of contributions of the state highway commission or state
transportation
commission to be made pursuant to under contracts
entered into under section 18d, which contributions are pledged to
the payment of principal and interest on bonds issued under the
authorization
of section 18d and contracts executed pursuant to
under that section. A sufficient portion of the fund is irrevocably
appropriated to pay, when due, the principal and interest on bonds
or notes issued under section 18b for purposes other than
comprehensive transportation purposes as defined by law, and to pay
the annual contributions of the state highway commission and the
state transportation commission as are pledged for the payment of
bonds
issued pursuant to under contracts authorized by section 18d.
(b)
For the transfer of funds appropriated pursuant to under
section
10(1)(g) 10(1)(h) to the transportation economic
development fund, but the transfer shall be reduced each fiscal
year by the amount of debt service to be paid in that year from the
state trunk line fund for bonds, notes, or other obligations issued
to fund projects of the transportation economic development fund,
which amount shall be certified by the department.
(c)
For the transfer of funds appropriated pursuant to under
section
10(1)(a) to the railroad rail
grade crossing account in the
state trunk line fund for expenditure for rail grade crossing
improvement purposes at rail grade crossings on public roads and
streets
under the jurisdiction of the this
state, counties, cities,
or
villages. Projects The
department shall be selected select
projects for funding in accordance with the following:
(i) Not more than 50% or less than 30% of these funds and
matched federal funds shall be expended for state trunk line
projects.
(ii) In prioritizing projects for these funds, in whole or in
part, the department shall consider train and vehicular traffic
volumes, accident history, traffic control device improvement
needs, and the availability of funding.
(iii) Consistent with the other requirements for these funds,
the
first priority for funds deposited pursuant to under this
subdivision for rail grade crossing improvements and retirement
shall
be is to match federal funds from the railroad-highway grade
crossing improvement program or other comparable federal programs
if a match is required under federal law.
(iv) If the department and the road authority with jurisdiction
over the crossing formally agree that the grade crossing should be
eliminated by permanent closing of the public road or street, the
physical removal of the crossing, roadway within railroad rights of
way, and
street termination treatment will shall be negotiated
between the road authority and railroad company. The funds provided
to
the road authority as a result of the crossing closure will
shall be credited to its account representing the same road or
street system on which the crossing is located and shall be used
for any transportation purpose within that road authority's
jurisdiction.
(d) For the total operating expenses of the state trunk line
fund for each fiscal year as appropriated by the legislature.
(e) For the preservation of state trunk line highways and
bridges.
(f) For the opening, widening, improving, construction, and
reconstruction of state trunk line highways and bridges, including
the acquisition of necessary rights of way and the work incidental
to that opening, widening, improving, construction, or
reconstruction.
Those sums The department
shall use sums in the
state trunk line fund that are not otherwise appropriated,
distributed,
determined, or set aside by law shall be used for the
construction or reconstruction of the national system of interstate
and defense highways, referred to in this act as "the interstate
highway system" to the extent necessary to match federal aid funds
as the federal aid funds become available for that purpose; and,
for the construction and reconstruction of the state trunk line
system.
(g)
The state transportation department may enter into
agreements
an agreement with a
county road commissions and with
cities
and villages commission,
city, or village to perform work on
a
highway, road, or street. The agreements agreement may provide
for the performance by any of the contracting parties of any of the
work contemplated by the contract including engineering services
and the acquisition of rights of way in connection with the work,
by purchase or condemnation by any of the contracting parties in
its own name, and for joint participation in the costs, but only to
the extent that the contracting parties are otherwise authorized by
law
to expend money on the highways, roads, or streets. The state
transportation
department also may contract with a
county road
commission,
city, and or village to advance money to a county road
commission,
city, and or village to pay their its costs
of
improving
railroad rail grade crossings on the terms and conditions
agreed to in the contract. A contract may be executed before or
after the state transportation commission borrows money for the
purpose of advancing money to a county road commission, city, or
village, but the contract shall be executed before the advancement
of any money to a county road commission, city, or village by the
state transportation commission, and shall provide for the full
reimbursement of any advancement by a county road commission, city,
or
village to the state transportation department, with interest,
within 15 years after advancement, from any available revenue
sources of the county road commission, city, or village or, if
provided in the contract, by deduction from the periodic
disbursements
of any money returned by the this
state to the county
road commission, city, or village.
(h) For providing inventories of supplies and materials
required
for the activities of the state transportation department.
The
state transportation department may purchase supplies and
materials for these purposes, with payment to be made out of the
state trunk line fund to be charged on the basis of issues from
inventory in accordance with the accounting and purchasing laws of
this state.
(2)
Notwithstanding Except as
otherwise provided in this
subsection and notwithstanding any other provision of this act, the
department shall expend annually at least 90% of state revenue
appropriated annually to the state trunk line fund less the amounts
described
in subdivisions (a) to (i) shall be expended annually by
the
state transportation department for
the preservation of
highways, roads, streets, and bridges and for the payment of debt
service on bonds, notes, or other obligations described in
subsection (1)(a) issued after July 1, 1983, for the purpose of
providing funds for the preservation of highways, roads, streets,
and bridges. Beginning on the effective date of the 2014 amendatory
act that amended this subsection and ending when the asset
management council determines that all highways, roads, streets,
and bridges in this state that are within the jurisdiction of the
department are in at least fair condition, the department shall
expend annually all of the state revenue appropriated annually to
the state trunk line fund less the amounts described in
subdivisions (a) to (i) for the preservation of highways, roads,
streets, and bridges and for the payment of debt service on bonds,
notes, or other obligations described in subsection (1)(a) issued
after July 1, 1983, for the purpose of providing funds for the
preservation of highways, roads, streets, and bridges. Of the
amounts appropriated for state trunk line projects, the department
shall, where possible, secure warranties of not less than 5-year
full replacement guarantee for contracted construction work. If an
appropriate certificate is filed under section 18e but only to the
extent
necessary, this subsection shall does not prohibit the use
of any amount of money restricted as to use by section 9 of article
IX of the state constitution of 1963 and deposited in the state
trunk line fund for the payment of debt service on bonds, notes, or
other
obligations pledging for the payment thereof of that debt
service money restricted as to use by section 9 of article IX of
the state constitution of 1963 and deposited in the state trunk
line fund, whenever issued, as specified under subsection (1)(a).
The
amounts which that are deducted from the state trunk line fund
for the purpose of the calculation required by this subsection are
as follows:
(a) Amounts expended for the purposes described in subsection
(1)(a) for the payment of debt service on bonds, notes, or other
obligations issued before July 2, 1983.
(b) Amounts expended to provide the state matching requirement
for projects on the national highway system and for the payment of
debt service on bonds, notes, or other obligations issued after
July 1, 1983, for the purpose of providing funds for the state
matching requirements for projects on the national highway system.
(c) Amounts expended for the construction of a highway,
street, road, or bridge to 1 or more of the following or for the
payment of debt service on bonds, notes, or other obligations
issued after July 1, 1983, for the purpose of providing funds for
the construction of a highway, street, road, or bridge to 1 or more
of the following:
(i) A location for which a building permit has been obtained
for the construction of a manufacturing or industrial facility.
(ii) A location for which a building permit has been obtained
for the renovation of, or addition to, a manufacturing or
industrial facility.
(d) Amounts expended for capital outlay other than for
highways, roads, streets, and bridges or to pay debt service on
bonds, notes, or other obligations issued after July 1, 1983, for
the purpose of providing funds for capital outlay other than for
highways, roads, streets, and bridges.
(e)
Amounts expended for the operating expenses of the state
transportation
department other than the units of
the department
performing the functions assigned on January 1, 1983 to the bureau
of highways.
(f)
Amounts expended pursuant to under
contracts entered into
before January 1, 1983.
(g) Amounts expended for the purposes described in subsection
(5).
(h) Amounts appropriated for deposit in the transportation
economic development fund and the rail grade crossing account
pursuant
to under section 10(1)(g) and 10(1)(a).10(1)(a) and (h).
(i) Upon the affirmative recommendation of the director of the
state
transportation department and the
approval by resolution of
the
state transportation commission, those amounts expended for
projects vital to the economy of this state, a region, or local
area or the safety of the public. The resolution shall state the
cost of the project exempted from this subsection.
(3)
Notwithstanding Except as
otherwise provided in this
subsection and notwithstanding any other provision of this act, the
state
transportation department shall
expend annually at least 90%
of the federal revenue distributed to the credit of the state trunk
line fund in that year, except for federal revenue expended for the
purposes described in subsection (2)(b), (c), (f), and (i) and for
the payment of notes issued under section 18b(9) on the
preservation of highways, roads, streets, and bridges. Beginning on
the effective date of the 2014 amendatory act that amended this
subsection and ending when the asset management council determines
that all highways, roads, streets, and bridges in this state that
are within the jurisdiction of the department are in at least fair
condition, the department shall expend annually all of the federal
revenue distributed to the credit of the state trunk line fund in
that year, except for federal revenue expended for the purposes
described in subsection (2)(b), (c), (f), and (i) and for the
payment of notes issued under section 18b(9), on the preservation
of
highways, roads, streets, and bridges. The
requirement
requirements
of this subsection shall be are waived
if compliance
would cause this state to be ineligible according to federal law
for federal revenue, but only to the extent necessary to make this
state eligible according to federal law for that revenue.
(4) Notwithstanding any other provision of this section, the
state
transportation department may loan
money to a county road
commissions,
cities, and villages commission,
city, or village for
paying capital costs of transportation purposes described in the
second paragraph of section 9 of article IX of the state
constitution of 1963 from the proceeds of bonds or notes issued
pursuant
to under section 18b or from the state trunk line fund.
Loans made directly from the state trunk line fund shall be made
only after provision of funds for the purposes specified in
subsection (1)(a) to (f). Loans described in this subsection are
not subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(5)
County A county road commissions, cities, and villages
commission, city, or village may borrow money from the proceeds of
bonds or notes issued under section 18b or the state trunk line
fund for the purposes set forth in subsection (4) that shall be
repayable, with interest, from 1 or more of the following:
(a) The money to be received by the county road commission,
city, or village from the Michigan transportation fund, except to
the extent the money has been or may in the future be pledged by
contract in accordance with 1941 PA 205, MCL 252.51 to 252.64, or
has been or may in the future be pledged for the payment of the
principal
and interest upon notes issued pursuant to under 1943
PA
143, MCL 141.251 to 141.254, or has been or may in the future be
pledged for the payment of principal and interest upon bonds issued
under section 18c or 18d, or has been or may in the future be
pledged for the payment of the principal and interest upon bonds
issued
pursuant to under 1952 PA 175, MCL 247.701 to 247.707.
(b) Any other legally available funds of the city, village, or
county road commission, other than the general funds of the county.
(6)
Loans A loan made pursuant to under subsection
(4) if
required
by the state transportation department may be payable by
deduction
by the state treasurer, upon direction of the state
transportation
department, from the periodic
disbursements of any
money
returned by the this state under this act to the county road
commission, city, or village, but only after sufficient money has
been returned to the county road commission, city, or village to
provide for the payment of contractual obligations incurred or to
be incurred and principal and interest on notes and bonds issued or
to be issued under 1941 PA 205, MCL 252.51 to 252.64, 1943 PA 143,
MCL 141.251 to 141.254, 1952 PA 175, MCL 247.701 to 247.707, or
section 18c or 18d. The department shall establish the interest
rates
and payment schedules of any a
loans made from the proceeds
of
bonds or notes issued pursuant to under section 18b shall
be
established
by the state transportation department to conform as
closely as practicable to the interest rate and repayment schedules
on
the bonds or notes issued to make the loans. However, the state
transportation
department may allow for the
deferral of the first
payment of interest or principal on the loans for a period of not
to exceed 1 year after the respective first payment of interest or
principal on the bonds or notes issued to make the loans.
(7) The amount borrowed by a county road commission, city, or
village
pursuant to under subsection (5) shall not be included in,
or charged against, any constitutional, statutory, or charter debt
limitation of the county, city, or village and shall not be
included in the determination of the maximum annual principal and
interest requirements of, or the limitations upon, the maximum
annual principal and interest incurred under 1941 PA 205, MCL
252.51 to 252.64, 1943 PA 143, MCL 141.251 to 141.254, 1952 PA 175,
MCL 247.701 to 247.707, or section 18c or 18d.
(8)
The A county road commission, city, or village is not
required to seek or obtain the approval of the electors, the
municipal finance commission or its successor agency, or, except as
provided in this subsection, the department of treasury to borrow
money
pursuant to under subsection (5). The borrowing is not
subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821, or to section 5(g) of the home rule city act,
1909
PA 279, MCL 117.5. The state transportation department shall
give at least 10 days' notice to the state treasurer of its
intention to make a loan under subsection (4). If the state
treasurer
gives notice to the director of the state transportation
department
within 10 days of receiving the notice from the state
transportation
department, that, based upon the
then existing
financial or credit situation of the county road commission, city,
or
village, it would not be in the best interests of the this state
to make a loan under subsection (4) to the county road commission,
city,
or village, the department shall
not make the loan shall not
be
made unless the state treasurer,
after a hearing, if requested
by the affected county road commission, city, or village,
subsequently
gives notice to the director of the state
transportation
department that the loan may be
made on the
conditions that the state treasurer specifies.
(9) The state transportation commission may borrow money and
issue
bonds and notes under , and pursuant to the requirements of,
section
18b to make loans a loan to a county road commissions,
cities,
and villages commission,
city, or village for the purposes
described in the second paragraph of section 9 of article IX of the
state constitution of 1963, as provided in subsection (4). A single
issue of bonds or notes may be issued for the purposes specified in
subsection (4) and for the other purposes specified in section 18b.
The department shall notify the house and senate transportation
appropriations
subcommittees shall be notified by the department if
there are extras and overruns sufficient to require approval of
either the state administrative board or the commission, or both,
on any contract between the department and a local road agency or a
private business.
(10)
The director of the state transportation department,
after consultation with representatives of the interests of county
road commissions, cities, and villages, shall establish, by
intergovernmental communication, procedures for the implementation
and administration of the loan program established under
subsections (4) to (9).
(11)
Not The department shall
not expend more than 10% per
year
of all of the funds received by and returned to the state
transportation
department from any source for the
purposes of this
section
may be expended for administrative expenses. The department
shall be subject to section 14(5) if it expends more than 10% per
year
is expended for administrative expenses. As used in this
subsection, "administrative expenses" means those expenses that are
not assigned including, but not limited to, specific road
construction or preservation projects and are often referred to as
general
or supportive services. Administrative expenses shall do
not include net equipment expense, net capital outlay, debt service
principal and interest, and payments to other state or local
offices
which that are assigned, but not limited to, specific road
construction projects or preservation activities.
(12) Any performance audits of the department shall be
conducted according to government auditing standards issued by the
United States general accounting office.
(13) Contracts entered into to advance money to a county road
commission, city, or village under subsection (1)(g) are not
subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(14) As used in this section, "rail grade crossing improvement
purposes" means 1 or more of the following:
(a) The installation and modernization of active and passive
warning devices at railroad grade crossings.
(b) The installation or improvement of grade crossing
surfaces.
(c) Modification, relocation, or modernization of railroad
grade crossing active and passive warning devices necessitated by
roadway improvement projects.
(d) Test installations of innovative warning devices or other
innovative applications.
(e) Construction of new grade separations.
(f)
A cash incentive payment made pursuant to under subsection
(1)(c)(iv) for any public road or street crossing, in an amount no
greater than the cost of installing flashing light signals and half
roadway gates at the crossing.
(g) Any other work that would be eligible for funding under
the federal railroad-highway grade crossing improvement program or
other comparable programs.
Sec. 12. (1) The department shall return the amount
distributed
to the county road commissions shall be returned to the
county treasurers in the manner, for the purposes, and under the
terms and conditions specified in this section. The department and
the county road association of Michigan shall jointly develop
incentives for counties to establish statewide purchasing pools for
the more efficient use of Michigan transportation funds.
(2)
Each The department shall
reimburse each county road
commission
shall be reimbursed in an amount up to $10,000.00 per
year for the sum paid to a licensed professional engineer employed
or retained by the county road commission in the previous year. The
department
shall return the sum shall be returned
to each county
road commission certified by the department as complying with this
subsection regarding the employment of an engineer.
(3)
An The department shall
withhold annually an amount equal
to 1% of the total amount returned to the county road commissions
from the Michigan transportation fund during the prior calendar
year
shall be withheld annually from the counties' November monthly
distribution provided for in section 17, and the department shall
return
that amount shall be returned to
the county road commissions
for snow removal purposes as provided in section 12a.
(4)
An The department shall
return an amount equal to 10% of
the total amount returned to the county road commissions from the
Michigan
transportation fund shall be returned to each county road
commission having county primary, or county local road, or both,
mileage
in the urban areas as determined pursuant to under section
12b.
This The department shall
distribute this sum shall be
distributed
pursuant to under section 12b. The return shall be is
in addition to the amounts provided in subsections (6) and (7) and
for the purposes stated in those subsections.
(5)
An The department shall
return an amount equal to 4% of
the total amount returned to the county road commissions from the
Michigan
transportation fund shall be returned to the county road
commissions in the same percentages as provided in subsection (7).
All
The county road commissions
shall expend the money returned to
the
county road commissions as provided in them under this
subsection
shall be expended by the county road commissions for the
preservation, construction, acquisition, and extension of county
local
road systems. and shall be The amount returned under this
subsection is in addition to the amounts provided in subsection
(7).
(6)
Seventy-five percent Each
county road commission shall
expend 75% of the remainder of the total amount to be returned to
the
counties shall be expended by each county road commission for
the preservation, construction, acquisition, and extension of the
county primary road system, including the acquisition of a
necessary right of way for the system, work incidental to the
system, and a roadside park or motor parkway appurtenant to the
system,
and the department shall be returned return the amount
described in this subsection to the counties as follows:
(a) Three-fourths of the amount in proportion to the amount
received within the respective county during the 12 months next
preceding the date of each monthly distribution, as specific taxes
upon registered motor vehicles under the Michigan vehicle code,
1949 PA 300, MCL 257.1 to 257.923.
(b) One-tenth of the amount in the same proportion that the
total mileage in the county primary road system of each county
bears to the total mileage in all of the county primary road
systems
of the this state.
(c) One eighty-third of the remaining 15% of the amount to
each county.
(7)
The Each county road
commission shall expend the balance
of the remainder of the total amount to be returned to counties
shall
be expended by each county road commission for the
preservation, construction, acquisition, and extension of the
county local road system as defined by this act, including the
acquisition of a necessary right of way for the system, work
incidental to the system, and a roadside park or motor parkway
appurtenant
to the system, and the department
shall be returned
return the amount described in this subsection to the counties as
follows:
(a) Sixty-five percent of the amount in the same proportion
that the total mileage in the county local road system of each
county bears to the total mileage in all of the county local road
systems
of the this state.
(b) Thirty-five percent of the amount in the same proportion
that the total population outside of incorporated municipalities in
each county bears to the total population outside of incorporated
municipalities
in all of the counties of the this
state, according
to the most recent statewide federal census as certified at the
beginning of the state fiscal year.
(8)
Money A county road
commission shall expend money
deposited
in , or
becoming a part of the county road funds of a the
board
of county road commissioners shall be expended first for the
payment of principal and interest on the bonds, for the payment of
contractual contributions pledged for the payment of bonds, for
debt service requirements for the payment of contractual
contributions pledged for the payment of bonds, and for debt
service requirements for the payment of notes and loans in the
following order of priority:
(a) For the payment of contributions required to be made by a
board of county road commissioners under a contract entered into
under 1941 PA 205, MCL 252.51 to 252.64, that have been pledged for
the payment of the principal and interest on bonds issued under
that act, or for the payment of total debt service requirements
upon notes issued by a board of county road commissioners under
1943 PA 143, MCL 141.251 to 141.254.
(b) For the payment of principal and interest upon bonds
issued under section 18c, and the payment of contributions of a
board
of county road commissioners made pursuant to under contracts
entered into under section 18d that are pledged to the payment of
principal and interest on bonds issued after June 30, 1957, under
the
authorization of section 18c and contracts executed pursuant to
its
provisions.under section 18c.
(c) For the payment of principal and interest upon loans
received
pursuant to under section 11(5), to the extent other funds
have not been made available for that payment.
(9)
Beginning November 1, 2008, no more than 50% per year of
the
amount returned to a county for use on the county primary road
system
may be expended, with or without matching, on the county
local
road system of that county. Except
as otherwise provided in
this
subsection, beginning September 30, 2010, no more than 30% per
year of the amount returned to a county for use on the county
primary road system may be expended, with or without matching, on
the county local road system of that county. An additional amount,
not to exceed 20% per year of the amount returned to a county for
use on the county primary road system, may be expended on the
county local road system of that county if there is an emergency or
if the county road commission determines that an additional 20% may
be expended on the county local road system. The county road
commission may attach any conditions to its determination if the
determination is for nonemergency purposes, including, but not
limited to, a requirement that the additional 20% expended on the
county local road system only be used to supplement funds from
other sources. No more than 15% per year of the amount returned to
a county for expenditure on the county local road system may be
used, with or without matching, on the county primary road system
of that county, and not to exceed an additional 15% per year of the
amount returned to a county for expenditure on the county local
road system, may, in case of an emergency or with the approval of
the county road commission, be expended, with or without matching,
on the county primary road system of that county. An amount
returned to a county for and on account of county local roads,
under this section, in excess of the total amount paid into the
county treasury each year by all of the townships of that county
for
and on account of the county local roads pursuant to under
section 14(6) may be transferred to and expended on the county
primary road system of that county.
(10)
Not A county shall expend
not less than 20% per year of
the
funds returned to a that county by this section shall be
expended
for snow and ice removal, the
construction or
reconstruction of a new highway or existing highway, and the
acquisition of a necessary right of way for those highways, and
work incidental to those highways, or for the servicing of bonds
issued
by the county for these purposes. Surplus A county may
expend
surplus funds may be expended for
the development,
construction, or repair of an off-street parking facility.
(11)
Not A county shall not
expend more than 5% per year of
the
funds returned to a that county for the county primary road
system
and the county local road system shall be expended for the
maintenance, improvement, or acquisition of appurtenant roadside
parks and motor parkways.
(12)
Funds A county road
commission shall expend funds
returned
to a county shall be expended by the county road
commission
for the purposes provided in this
section, and the
county
treasurer shall be deposited by the
county treasurer deposit
the funds in a designated county depository, in a separate account
to
the credit of the county road fund, and shall be paid pay the
funds out only upon the order of the county road commission, and
interest accruing on the money shall become a part of, and be
deposited with, the county road fund.
(13) In a county to which funds are returned under this
section, the function of the county road commission shall be
limited to the formation of policy and the performance of the
official duties imposed by law and delegated by the county board of
commissioners. A member of the county road commission shall not be
employed individually in any other capacity for other duties with
the county road commission.
(14) A county road commission may enter into an agreement with
a county road commission of an adjacent county and with a city or
village to perform work on a highway, road, or street, and with the
department with respect to a state trunk line highway and
connecting links of the state trunk line highway within the limits
of the county or adjacent to the county. The agreement may provide
for the performance by each contracting party of the work
contemplated by the contract including engineering services and the
acquisition of rights of way in connection with the work
contemplated, by purchase or condemnation, by any of the
contracting parties in its own name and the agreement may provide
for joint participation in the costs.
(15)
Money A county may expend
money distributed from the
Michigan
transportation fund may be expended for construction
purposes on county local roads only to the extent matched by money
from other sources. However, a county may expend Michigan
transportation
funds may be expended for the construction of
bridges on the county local roads in an amount not to exceed 75% of
the cost of the construction of local road bridges.
(16)
Notwithstanding Except as
otherwise provided in this
subsection and notwithstanding any other provision of this act, a
county road commission shall expend annually at least 90% of the
state revenue returned annually to the county road commission from
the Michigan transportation fund less the amounts described in
subdivisions
(a) to (e) shall be expended annually by the county
road
commission for the preservation of
highways, roads, streets,
and bridges, and for the payment of contractual contributions
pledged for the payment of bonds or portions of bonds, debt service
requirements for the payment of bonds or portions of bonds, and
debt service requirements for the payment of notes and loans or
portions of notes and loans issued or received after July 1, 1983,
for the purpose of providing funds for the preservation of
highways, roads, streets, and bridges. Beginning on the effective
date of the 2014 amendatory act that amended this subsection and
ending when the asset management council determines that all
highways, roads, streets, and bridges in this state that are within
the jurisdiction of the county road commission of this state are in
at least fair condition, all of the state revenue returned annually
to a county road commission from the Michigan transportation fund
less the amounts described in subdivisions (a) to (e) shall be
expended annually by the county road commission for the
preservation of highways, roads, streets, and bridges, and for the
payment of contractual contributions pledged for the payment of
bonds or portions of bonds, debt service requirements for the
payment of bonds or portions of bonds, and debt service
requirements for the payment of notes and loans or portions of
notes and loans issued or received after July 1, 1983, for the
purpose of providing funds for the preservation of highways, roads,
streets, and bridges. If an appropriate certificate is filed under
subsection (18) but only to the extent necessary, this subsection
does not prohibit the use of any amount of state revenue returned
annually to the county road commissions for the payment of
contractual contributions pledged for the payment of bonds, for
debt service requirements for the payment of bonds, and for debt
service requirements for the payment of notes or loans, whenever
issued or received, as specified under subsection (8). The amounts
that are deducted from the state revenue returned to a county road
commission from the Michigan transportation fund, for the purpose
of the calculation required by this subsection are as follows:
(a) Amounts expended for the purposes described in subsection
(8) for bonds, notes, loans, or other obligations issued or
received before July 2, 1983.
(b) Amounts expended for the administrative costs of the
county road commission.
(c) Amounts expended for capital outlay projects for equipment
and buildings, and for the payment of contractual contributions
pledged for the payment of bonds, for debt service requirements for
the payment of bonds, and for debt service requirements for the
payment of notes and loans issued or received after July 1, 1983,
for the purpose of providing funds for capital outlay projects for
equipment and buildings.
(d) Amounts expended for projects vital to the economy of the
local area or the safety of the public in the local area. Before
these amounts can be deducted, the governing body over the county
road commission or the county road commission, as applicable, shall
pass a resolution approving these projects. This resolution shall
state
which projects will be funded and the cost of each project. A
The governing body over the county road commission or the county
road commission shall immediately forward a copy of each approved
resolution
shall be forwarded immediately to the department.
(e)
Amounts expended in urban areas as determined pursuant to
under section 12b.
(17)
As used in this subsection, "urban routes" means those
portions
of 2-lane county primary roads within an urban area that
have
average daily traffic in excess of 15,000. Notwithstanding any
other provision of this act, except as provided in this subsection,
a county road commission shall annually expend at least 90% of the
federal revenue distributed to the county road commission for
highways, roads, streets, and bridges, less the amount expended on
urban routes for purposes other than preservation and the amount
expended for hard-surfacing of gravel roads on the federal-aid
system, on the preservation of highways, roads, streets, and
bridges.
A Except as otherwise
provided in this subsection, a
county road commission may expend in 1 year less than 90% of the
federal revenue distributed to the county road commission for
highways, roads, streets, and bridges, less the amount expended on
urban routes for purposes other than preservation and the amount
expended for hard-surfacing of gravel roads on the federal-aid
system, on the preservation of highways, roads, streets, and
bridges, if that year is part of a 3-year period in which at least
90% of the total federal revenue distributed in the 3-year period
to the county road commission for highways, roads, streets, and
bridges, less the amount expended on urban routes for purposes
other than preservation purposes and the amount expended for hard-
surfacing of gravel roads on the federal-aid system, is expended on
the preservation of highways, roads, streets, and bridges. If a
county road commission expends in 1 year less than 90% of the
federal revenue distributed to the county road commission for
highways, roads, streets, and bridges, less the amount expended on
urban routes for purposes other than preservation and the amount
expended for hard-surfacing of gravel roads on the federal-aid
system, on the preservation of highways, roads, streets, and
bridges and that year is not a part of a 3-year period in which at
least 90% of the total federal revenue distributed in the 3-year
period to the county road commission for highways, roads, streets,
and bridges, less the amount expended on urban routes for purposes
other than preservation and the amount expended for hard-surfacing
of gravel roads on the federal-aid system, is expended on the
preservation of highways, roads, streets, and bridges, the county
road commission shall expend in each year subsequent to the 3-year
period 100%, or less in 1 year if sufficient for the purposes of
this subsection, of the federal revenue distributed to the county
road commission for highways, roads, streets, and bridges, less the
amount expended on urban routes for purposes other than
preservation and the amount expended for hard-surfacing of gravel
roads on the federal-aid system, on the preservation of highways,
roads, streets, and bridges until the average percentage spent on
the preservation of highways, roads, streets, and bridges in the 3-
year period and the subsequent years, less the amount expended on
urban routes for purposes other than preservation and the amount
expended for hard-surfacing of gravel roads on the federal-aid
system, is at least 90%. A year may be included in only one 3-year
period for the purposes of this subsection. Beginning on the
effective date of the 2014 amendatory act that amended this
subsection and ending when the asset management council determines
that all highways, roads, streets, and bridges in this state that
are within the jurisdiction of the county road commission of this
state are in at least fair condition, a county road commission
shall expend annually all of the federal revenue distributed to the
county road commission in that year on the preservation of
highways, roads, streets, and bridges. The requirements of this
subsection
shall be are waived if compliance would cause the county
road commission to be ineligible for federal revenue under federal
law, but only to the extent necessary to make the county road
commission eligible for that revenue under federal law. For the
purpose of the calculations required by this subsection, the amount
expended on urban routes by a county road commission for purposes
other than preservation and the amount expended for hard-surfacing
of gravel roads on the federal-aid system shall be deducted from
the total federal revenue distributed to the use of the county road
commission. As used in this subsection, "urban routes" means those
portions of 2-lane county primary roads within an urban area that
have average daily traffic in excess of 15,000.
(18) A county road commission shall certify to the department
on or before the issuance of any bonds or notes issued after July
1,
1983, pursuant to under 1943 PA 143, MCL 141.251 to 141.254,
1941 PA 205, MCL 252.51 to 252.64, or section 18c or 18d, for
purposes other than the preservation of highways, roads, streets,
and bridges and purposes other than the purposes specified in
subsection (16)(c) that its average annual debt service
requirements for all bonds and notes or portions of bonds and notes
issued after July 1, 1983, for purposes other than the preservation
of highways, roads, streets, and bridges and other than for the
purposes specified in subsection (16)(c), including the bond or
note to be issued does not exceed 10% of the funds returned to the
county
road commission pursuant to under
this act, less the amounts
specified in subsection (16)(a), (b), and (c) during the last
completed fiscal year of the county road commission. If the purpose
for which the bonds or notes are issued is changed after the
issuance of the notes or bonds, the change shall be made in a
manner that maintains compliance with the certification required by
this subsection, as of the date the certificate was originally
issued,
but no such the change shall not invalidate or otherwise
affect the bonds or notes with respect to which the certificate was
issued or the obligation to pay debt service on the bonds or notes.
A certification under this subsection is conclusive as to the
matters stated in the certification for purposes of the validity of
bonds and notes.
(19) In each charter county to which funds are returned under
this section, the responsibility for road improvement,
preservation, and traffic operation work, and the development,
construction, or repair of off-road parking facilities and
construction or repair of road lighting shall be coordinated by a
single administrator to be designated by the county executive who
shall be responsible for and shall represent the charter county in
transactions
with the department pursuant to under
this act.
(20)
Not A county may not
expend more than 10% per year of all
of
the funds received by and returned to a that county from any
source
for the purposes of this section may be expended for
administrative expenses. A county that expends more than 10% for
administrative expenses in a year is subject to section 14(5)
unless
the department of treasury grants
a waiver. is granted by
the
department of treasury. As used in
this subsection,
"administrative expenses" means those expenses that are not
assigned including, but not limited to, specific road construction
or preservation projects and are often referred to as general or
supportive services. Administrative expenses do not include net
equipment expense, net capital outlay, debt service principal and
interest, and payments to other state or local offices that are
assigned, but not limited to, specific road construction projects
or preservation activities.
(21) In addition to the financial compliance audits required
by law, the department may conduct performance audits and make
investigations of the disposition of all state funds received by
county road commissions, county boards of commissioners, or any
other county governmental agency acting as the county road
authority, for transportation purposes to determine compliance with
the
terms and conditions of this act. Performance The department
shall
conduct performance audits shall be
conducted according to
government auditing standards issued by the United States general
accounting office. The department shall develop performance audit
procedures and reporting requirements sufficient to determine
whether funds expended under this section were expended in
compliance with this act by September 1, 2012 and shall report to
the transportation committees of the senate and house of
representatives no later than October 1, 2012 on the additional
audit procedures and reporting requirements. The department shall
provide notice to the county road commission, county board of
commissioners, or any other county governmental agency acting as
the county road authority, as applicable, of the standards to be
used for audits performed under this subsection. The department
shall
provide the notice shall be provided
6 months prior to the
fiscal year in which the audit is conducted. The department shall
notify the county road commission, county board of commissioners,
or any other county governmental agency acting as the county road
authority of any subsequent changes to the standards. County road
commissions, county boards of commissioners, or any other county
governmental agencies acting as county road authorities, as
applicable, shall make available to the department the pertinent
records for the audit. Performance audits may be performed at the
discretion of the department or upon receiving a request from the
speaker of the house of representatives or the senate majority
leader.
Sec. 13. (1) The department shall return to the treasurers of
the cities and villages the amount distributed to cities and
villages
shall be returned to the treasurers of the cities and
villages
in the manner, for the purposes,
and under the terms and
conditions specified in this section. The amount received by a
newly incorporated municipality shall be in place of any other
direct distribution of funds from the Michigan transportation fund.
The department shall add the population of a newly incorporated
municipality
as determined under this section shall be added to the
total
population of all incorporated cities and villages in the
this state in computing the amounts to be returned under this
section
to each municipality in the this
state. Major The
department shall determine major street mileage, local street
mileage,
and equivalent major mileage, if applicable, shall be
determined
by the department before the next
month for which
distribution is made following the effective date of incorporation
of a newly incorporated municipality.
(2) From the amount available for distribution to cities and
villages during each December, the department shall withhold an
amount equal to 0.7% of the total amount returned to all cities and
villages under subsections (3) and (4) during the previous calendar
year. shall
be withheld. The department
shall use the amount
withheld
shall be used to partially reimburse cities and villages
located in counties that are eligible for snow removal funds
pursuant
to under section 12a and that have costs for winter
maintenance on major and local streets that are greater than the
statewide average. The department shall make the distributions
shall
be made annually during February
and shall be calculated
calculate the distributions separately for the major and local
street
systems, but the
department may be paid pay the
distributions in a combined warrant. The distribution to a city or
village shall be equal to 1/2 of its winter maintenance
expenditures after deducting the product of its total earnings
under subsections (3) and (4) multiplied by 2 times the average
municipal
winter maintenance factor. Winter The department shall
determine
winter maintenance expenditures shall
be determined from
the street financial reports for the most current fiscal years
ending before July 1. A city or village that does not submit a
street financial report for the fiscal year ending before July 1 by
the subsequent December 31 is ineligible for the winter maintenance
payment that is to be based on that street financial report. The
department shall determine the average municipal winter maintenance
factor annually by dividing the total expenditures of all cities
and villages on winter maintenance of streets and highways by the
total amount earned by all cities and villages under subsections
(3) and (4) during the 12 months. If the sum of the distributions
to be made under this subsection exceeds the amount withheld, the
department shall proportionately reduce the distributions to each
eligible
city and village. shall be reduced proportionately. If the
sum is less than the amount withheld, the department shall add the
balance
shall be added to the amount available for distribution
under subsections (3) and (4) during the next month. The
distributions shall be for use on the major and local street
systems
respectively and shall be are
subject to the same
provisions as funds returned under subsections (3) and (4).
(3)
Seventy-five percent The
department shall return 75% of
the remaining amount to be returned to the cities and villages,
after
deducting the amounts withheld pursuant to under subsection
(2),
shall be returned 60% in the same proportion that the
population of each bears to the total population of all cities and
villages, and 40% in the same proportion that the equivalent major
mileage in each bears to the total equivalent major mileage in all
cities
and villages. The Each
city and village shall use the amount
returned
under this subsection shall be used by each city and
village
for the following purposes in the
following order of
priority:
(a) For the payment of contributions required to be made by a
city or village under the provisions of contracts previously
entered into under 1941 PA 205, MCL 252.51 to 252.64, that have
been previously pledged for the payment of the principal and
interest on bonds issued under that act; or for the payment of the
principal and interest upon bonds issued by a city or village
pursuant
to under 1952 PA 175, MCL 247.701 to 247.707.
(b) Payment of obligations of the city or village on highway
projects undertaken by the city or village jointly with the
department.
(c) For the payment of principal and interest upon loans
received
pursuant to under section 11(5), to the extent other funds
have not been made available for that payment.
(d) For the preservation, construction, acquisition, and
extension of the major street system as defined by this act
including the acquisition of a necessary right of way for the
system, work incidental to the system, and an appurtenant roadside
park or motor parkway, of the city or village and for the payment
of the principal and interest on that portion of the city's or
village's general obligation bonds that are attributable to the
construction or reconstruction of the city's or village's major
street
system. Not A city or
village shall not expend more than 5%
per
year of the funds returned to a that
city or village by this
subsection
shall be expended for the preservation or acquisition of
appurtenant
roadside parks and motor parkways. Surplus A city or
village
may expend funds may be expended for
the development,
construction, or repair of off-street parking facilities, the
construction or repair of street lighting, and transfer to the
local street system under subsection (6).
(e) For capital outlay projects for equipment and buildings,
contributions pledged for the payment of loans and for the payment
of contractual debt service requirements for the payment of bonds
for the purpose of providing funds for capital outlay projects for
equipment and buildings necessary to the development and
maintenance of the road system so long as amounts allocated under
this subdivision are used for transportation purposes.
(4)
The Except as otherwise
provided in subsection (8), the
remaining
amount to be returned to incorporated cities and villages
shall be expended in each city or village for the preservation,
construction, acquisition, and extension of the local street system
of the city or village, including the acquisition of a necessary
right of way for the system, work incidental to the system, and
subject to subsection (5), for the payment of the principal and
interest on the portion of the city's or village's general
obligation bonds that are attributable to the construction or
reconstruction of the city's or village's local street system. The
department shall return the amount returned under this subsection
shall
be returned to the cities and
villages 60% in the same
proportion that the population of each bears to the total
population
of all incorporated cities and villages in the this
state, and 40% in the same proportion that the total mileage of the
local street system of each bears to the total mileage in the local
street
systems of all cities and villages of the this state. The
payment of the principal and interest upon bonds issued by a city
or
village pursuant to under 1952 PA 175, MCL 247.701 to 247.707,
and after that payment, the payment of debt service on loans
received under section 11(5), shall have priority in the
expenditure of money returned under this subsection.
(5) Money distributed to each city and village for the
maintenance and preservation of its local street system under this
act
represents the total responsibility of the this state
for local
street
system support. Funds A
city or village shall not expend
funds
distributed from the Michigan
transportation fund shall not
be
expended for construction purposes
on city and village local
streets except to the extent matched from local revenues including
other
money returned to a city or village by the this state
under
the
state constitution of 1963 and statutes of the this state,
from
funds that can be raised by taxation in cities and villages for
street purposes within the limitations of the state constitution of
1963 and statutes of this state, from special assessments, or from
any other source.
(6)
Money A city or village
shall expend money returned under
this
section to a city or village shall be expended on the major
and local street systems of that city or village. However, the
first
priority shall be the major street system. Money A city or
village shall expend money returned for expenditure on the major
street
system shall be expended in the priority order provided in
subsection (3) except that the city or village may transfer surplus
funds
may be transferred for preservation of the local street
system.
Major A city or village
shall not use major street funds
transferred
for use on the local street system shall not be used
for
construction but the city or
village may be used use those
funds for preservation. A city or village shall not transfer more
than 50% of its annual major street funding for the local street
system unless it has adopted and is following an asset management
process for its major and local street systems and adopts a
resolution with a copy to the department setting forth all of the
following:
(a) A list of the major streets in that city or village.
(b) A statement that the city or village is adequately
maintaining its major streets.
(c) The dollar amount of the transfer.
(d) The local streets to be funded with the transfer.
(e) A statement that the city or village is following an asset
management process for its major and local street systems.
(7) A city or village that has not adopted an asset management
plan shall obtain the concurrence of the department to transfer
more than 50% of its major street funding to its local street
system. The department may provide for pilot projects that would
allow a city or village that has adopted an asset management plan
under subsection (6) to combine their local and major street funds
into 1 street fund and to submit a single report to the department
on the expenditure of funds on the local and major street systems.
(8) Notwithstanding any other provision of this act, beginning
on the effective date of the amendatory act that added this
subsection and ending when the asset management council determines
that all highways, roads, streets, and bridges in this state that
are within the jurisdiction of the cities and villages of this
state are in at least fair condition, all of the state revenue
returned annually to a city or village from the Michigan
transportation fund less the amounts described in subsections (2)
and (3) shall be expended annually by the city or village for the
preservation of highways, roads, streets, and bridges, and for the
payment of contractual contributions pledged for the payment of
bonds or portions of bonds, debt service requirements for the
payment of bonds or portions of bonds, and debt service
requirements for the payment of notes and loans or portions of
notes and loans issued or received after July 1, 1983, for the
purpose of providing funds for the preservation of highways, roads,
streets, and bridges.
(9) (8)
Not A city or village shall
not expend more than 10%
per
year of all of the funds returned to a that city or village
from
any source for the purposes of this section may be expended
for administrative expenses. A city or village that expends more
than 10% for administrative expenses in a year is subject to
section 14(5).
(10) (9)
In each city and village to which
funds are returned
under this section, the responsibility for street preservation and
the development, construction, or repair of off-street parking
facilities and construction or repair of street lighting shall be
coordinated by a single administrator to be designated by the
governing body who shall be responsible for and shall represent the
municipality
in transactions with the department pursuant to under
this act.
(11) (10)
Cities and villages may provide for
consolidated
street administration. A city or a village may enter into an
agreement with other cities or villages, the county road
commission, or with the state transportation commission for the
performance of street or highway work on a road or street within
the limits of the city or village or adjacent to the city or
village. The agreement may provide for any of the contracting
parties to perform the work contemplated by the contracts including
services and acquisition of rights of way, by purchase or
condemnation in its own name. The agreement may provide for joint
participation in the costs if appropriate.
(12) (11)
Interest A city or village
shall credit interest
earned
on funds returned to a that
city or a village for purposes
provided
in this section shall be credited to the appropriate
street fund.
(13) (12)
In addition to the financial
compliance audits
required by law, the department may conduct performance audits and
make investigations of the disposition of all state funds received
by cities and villages for transportation purposes to determine
compliance
with the terms and conditions of this act. Performance
The
department shall conduct performance audits
shall be conducted
according to government auditing standards issued by the United
States general accounting office. The department shall develop all
performance audit procedures and reporting requirements sufficient
to determine whether funds expended under this section were
expended in compliance with this act by September 1, 2012 and shall
report to the transportation committees of the senate and house of
representatives no later than October 1, 2012 on the additional
audit procedures and reporting requirements. The audit procedures
shall include a review of the road fund balance of the city or
village. The cities and villages shall report their road fund
balances by fund balance component. The department shall assist
cities and villages to ensure that road fund balances are
consistently classified and are in compliance with the audit and
reporting requirements of this section. The department shall
provide notice to cities and villages of the standards to be used
for audits under this subsection prior to the fiscal year in which
the audit is conducted. The department shall notify cities and
villages of any subsequent changes to the standards. Cities and
villages shall make available to the department the pertinent
records for the audit. Performance audits may be performed at the
discretion of the department or upon receiving a request from the
speaker of the house of representatives or the senate majority
leader.
(14) (13)
As used in this section:
(a) "Administrative expenses" means expenses that are not
assigned under this section, including, but not limited to,
specific road construction or maintenance projects, and are often
referred to as general or supportive services. Administrative
expenses do not include net equipment expense, net capital outlay,
debt service principal and interest, or payments to other state or
local offices that are assigned, but not limited to, specific road
construction projects or maintenance activities.
(b) "Equivalent major mileage" means the sum of 2 times the
state trunk line mileage certified by the department as of March 31
of each year, as being within the boundaries of each city and
village having a population of 25,000 or more, plus the major
street mileage in each city and village, multiplied by the
following factor:
(i) 1.0 for cities and villages of 2,000 or less population.
(ii) 1.1 for cities and villages from 2,001 to 10,000
population.
(iii) 1.2 for cities and villages from 10,001 to 20,000
population.
(iv) 1.3 for cities and villages from 20,001 to 30,000
population.
(v) 1.4 for cities and villages from 30,001 to 40,000
population.
(vi) 1.5 for cities and villages from 40,001 to 50,000
population.
(vii) 1.6 for cities and villages from 50,001 to 65,000
population.
(viii) 1.7 for cities and villages from 65,001 to 80,000
population.
(ix) 1.8 for cities and villages from 80,001 to 95,000
population.
(x) 1.9 for cities and villages from 95,001 to 160,000
population.
(xi) 2.0 for cities and villages from 160,001 to 320,000
population.
(xii) For cities over 320,000 population, a factor of 2.1
increased successively by 0.1 for each 160,000 population increment
over 320,000.
(c) "Population" means the population according to the most
recent statewide federal census as certified at the beginning of
the state fiscal year, except that, if a municipality has been
newly incorporated since completion of the census, the population
of the municipality for purposes of the distribution of funds
before completion of the next census shall be the population as
determined by special federal census, if there is a special federal
census, and if not, by the population as determined by the official
census in connection with the incorporation, if there is such a
census and, if not, by a special state census to be taken at the
expense
of the municipality by the secretary of state pursuant to
under section 6 of the home rule city act, 1909 PA 279, MCL 117.6.