HB 6129

HOUSE BILL NO. 6129
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; to investigate and study the tolling of roads, streets,
highways, or bridges; and to repeal acts and parts of acts,"
by amending sections 10e and 13c (MCL 247.660e and
247.663c), section 10e as amended by 2012 PA 391 and section 13c as added by
2025 PA 16.
the people of the state of michigan enact:
Sec. 10e. (1) The comprehensive
transportation fund is appropriated for each fiscal year in the following order
of priority.
(2) The first
priority is to pay, but only from money restricted as to use by section 9 of
article IX of the state constitution of 1963, the principal and interest on
bonds or notes issued under section 18b for comprehensive transportation
purposes as defined by law. A sufficient portion of the comprehensive
transportation fund is irrevocably appropriated to pay, when due, the principal
and interest on those bonds and notes.
(3) After making or
setting aside payments required by subsection (2), the second priority of the
comprehensive transportation fund is the payment of the department's cost in
administering the comprehensive transportation fund. The amount to be expended pursuant
to this subsection shall must not exceed the costs appropriated for the
administration of the fund in the fiscal year ending September 30, 1987, as
adjusted annually on October 1, by the change for the preceding 12 months in
the Detroit consumer price index Consumer Price Index for urban wage earners and shall
be appropriated annually by the legislature.
(4) After making or
setting aside payments required by subsections (2) and (3), the balance of the
comprehensive transportation fund shall must be expended each fiscal year as appropriated
annually by the legislature pursuant to the state transportation program
approved by the commission as follows:
(a) The third
priority shall be is
the payment of operating grants to eligible authorities and eligible
governmental agencies according to the following formulations and subject to
the following requirements:
(i) For the
fiscal year ending September 30, 1998, and for each fiscal year, thereafter, each
eligible authority and eligible governmental agency that provides public
transportation services in urbanized areas under 49 USC 5307, with a Michigan
population greater than 100,000 shall 200,000 must receive a grant of up to 50% of their
eligible operating expenses as defined by the department.
(ii) For the
fiscal year ending September 30, 1998, and each fiscal year, thereafter, each
eligible authority and eligible governmental agency that provides public
transportation services in urbanized areas with a Michigan population less than
or equal to 100,000 200,000 and nonurbanized areas under 49 USC 5311, shall must receive
a grant of up to 60% of their eligible operating expenses as defined by the
department. For purposes of receiving a grant under this subparagraph in
nonurbanized areas, eligible costs of services provided by water vehicle shall must be
reimbursed at not less than 50% of the portion of the costs not eligible for
reimbursement by the federal government.
(iii) Funds shall must not be distributed to an eligible authority or
eligible governmental agency under this act unless the eligible authority or
eligible governmental agency provides or agrees to provide preferential fares
for public transportation services to persons 65 years of age or over or
persons with disabilities riding in off peak periods of service. As used in this section, "person with
disabilities" means an individual with a disability as that term is
defined in 61 FR 56424 (November 1, 1996) and 49 CFR part 27. The
preferential fares shall must not be higher than 50% of the regular 1-way
single fare.
(iv) Eligible authorities and eligible
governmental agencies shall not engage in charter service using vehicles,
facilities, or equipment funded under this act except on an incidental basis as
defined by 49 CFR part 604.
(v) Notwithstanding
any other provision of this subsection, for the fiscal year ending September
30, 1998, each eligible authority and eligible governmental agency shall
receive a distribution from the comprehensive transportation fund not less than
the distribution received for eligible operating expenses for the fiscal year
ending September 30, 1997. Beginning with the fiscal year ending September 30,
1998 and each fiscal year thereafter, For each
fiscal year, each eligible authority and eligible governmental agency
shall receive a distribution from the comprehensive transportation fund for
eligible operating expenses not less than the distribution received for the
fiscal year ending September 30, 1997. As it relates to this subsection the
ratio between comprehensive transportation funds and local funds in the fiscal
year ending September 30, 1989 shall must be maintained for all fiscal years by the
eligible authority and eligible governmental agency. Reductions in this ratio shall must require
a proportionate reduction in the comprehensive transportation funds provided
for any fiscal year.
(vi) Each eligible authority and eligible
governmental agency receiving comprehensive transportation funds shall prepare
and submit to the department a quarterly report of the progress made in
carrying out its local transportation program within
not more than 40 days after the end of
each fiscal year quarter. The progress report shall
must be made on forms authorized by the
United States department Department of transportation
Transportation under the provisions of
the surface transportation and uniform relocation assistance act of 1987,
Public Law 100-17, 101 Stat. Stat 132.
(vii) The department shall periodically adjust
or redistribute comprehensive transportation funds previously distributed under
this subdivision.
(b) For the each fiscal
year, ending
September 30, 1997, and each fiscal year thereafter, not less than 10%
shall be distributed by the department for intercity passenger and intercity
freight transportation purposes.
(c) For the each fiscal
year, ending
September 30, 1997, and each fiscal year thereafter, funds remaining in
the fund after payment of the amounts required by subdivisions (a) and (b)
shall be distributed by the department for public transportation purposes. For the each fiscal
year, ending
September 30, 1998, and each fiscal year thereafter, funds shall must be made
available to match all projects for eligible authorities and eligible
governmental agencies that are approved for federal funding as provided by
federal law and for which an approved transportation improvement program (TIP)
and state transportation improvement plan (STIP) exist. Funds distributed under
this subdivision shall must be expended pursuant to specific line item
appropriation for, but are not limited to, the following public transportation
purposes:
(i) The specialized services assistance
program. The specialized services assistance program shall must be
funded with not less than $3,600,100.00 from funds distributed under this
subdivision. Funds shall must be distributed according to guidelines developed
by the department based upon on the following considerations:
(A) Proposals for
coordinated specialized services assistance funding shall must be
developed jointly between existing eligible authorities or eligible
governmental agencies that provide public transportation services and the area
agencies on aging or any other organization representing specialized services
interests, as defined in this subdivision. Plans shall
must be reviewed and approved by the
bureau of urban and public transportation of the department. Upon On approval,
the department shall release the funds to the eligible authority or eligible
governmental agency which shall then allocate the funds to the area agency on
aging or any other organization representing specialized services interests, as
defined in this subdivision for the purchase of services as approved in the
plan by the department.
(B) If an eligible
authority or eligible governmental agency does not exist to provide public
transportation service in a county, coordinated proposals for specialized
services assistance funding may be submitted by the area agency on aging or any
other organization representing specialized services interests, as defined in
this subdivision. The proposals shall must be reviewed and approved by the bureau of urban
and public transportation of the department. Upon On approval, the department shall release the funds
to the area agency on aging or any other organization representing specialized
services interests, as defined in this subdivision for the purchase of services
as approved in the plan by the department.
(C) For the
purposes of this program, "specialized services" means public
transportation primarily designed for persons with disabilities or persons who
are 65 years of age or older.
(ii) Local bus capital. For the fiscal year ending September 30, 1998 and each
fiscal year, thereafter,
not less than $8,000,000.00 will must be distributed for either matching federal funds
for local bus capital or 100% capital projects for eligible authorities and
eligible governmental agencies that are not eligible to receive federal capital
formula funds under section 5307 of the federal intermodal surface
transportation efficiency act of 1991, Public
Law 102-240, or any successor act.
(iii) Local bus new services.
(iv) Not less than $2,000,000.00 in each
fiscal year for the credit program established under section 10l.
(v) Public transportation development.
(vi) Other public transportation programs
approved by the commission.
(d) The
unappropriated and unencumbered balance of the comprehensive transportation
fund lapses at the end of each fiscal year and reverts to the comprehensive
transportation fund for appropriation in the following fiscal year.
(5) Eligible
authorities and eligible governmental agencies shall
must receive capital grants each fiscal
year by the annual process described in this section. Amounts received by an
eligible authority or eligible governmental agency pursuant to this subsection shall must be
expended by that authority or agency solely for capital projects that have been
approved by the state transportation commission. Any funds approved by
distribution to an eligible authority or eligible governmental agency pursuant
to this section that have not been encumbered by that agency or authority for
an approved capital project by the end of the following fiscal year in which
the funds were approved shall must not be expended by the authority or agency and be are available
for distribution from the comprehensive transportation fund for the purposes
described in this section.
(6) The department,
in carrying out the policy of the state transportation commission, shall
annually prepare and distribute by December 1, instructions to eligible
governmental agencies, eligible authorities, and intercity carriers to enable
the preparation of a local transportation program. Eligible governmental
agencies, eligible authorities, and intercity carriers shall give public notice
of their intent to apply for money in the comprehensive transportation fund to
the residents of the counties, townships, villages, and cities affected by the
local transportation program and shall make their application available for a
period of 30 days. All comments received by the eligible governmental agency,
eligible authority, or intercity carrier shall must be transmitted to the department.
(7) On or before
March 1 of each year, each intercity carrier, eligible authority, and eligible
governmental agency shall submit to the department its local transportation
program for the next succeeding fiscal year. The format for each local
transportation program shall must be as prescribed by the federal transportation improvement program insofar as Transportation Improvement Program to the extent that it is practical
and shall must include
project descriptions, funding sources, and justification for each line item,
and summary budgets based on distributions anticipated under subsection (4).
The program shall must
contain at a minimum the contemplated routes, hours of service,
estimated transit vehicle miles, costs of public transportation services, and
projected capital improvements or projects as exclusively determined by the
eligible authority or eligible governmental agency. The costs of service and
capital improvements or projects shall must be in sufficient detail to permit the department
to evaluate and approve the annual public transportation program. Determination
of individual projects to be included in the local transportation programs
other than those provided in this subsection shall must be made by the governing body of the eligible
authority or eligible governmental agency.
(8) On or before
March 1 of each year, the department shall prepare and file for public
inspection and review the department transportation program. The department
transportation program shall must be prepared on similar format to the local
transportation programs, and shall must include a summary description of projects, with
funding sources and project justifications for each line item for the fiscal
year immediately succeeding the fiscal year in which the program is submitted.
In addition, the department transportation program shall
must include summary, nondetailed budget
and project descriptions and justifications excluding projects contained in a
local transportation program.
(9) On or before
April 1 of each year, the department shall must prepare and file with the commission the
proposed state transportation program for the next succeeding fiscal year. The
proposed state transportation program shall must contain the local transportation programs of
each intercity carrier, eligible authority and eligible governmental agency,
the department transportation program, and the programs for the expenditure of
the state trunk line fund as they may have been supplemented, amended, or modified
since their original filing. The state transportation program shall must include
the estimated amount of money in the funds described in this subsection by
revenue source, project justifications, project descriptions funding sources,
and budget summaries.
(10) On or before
May 1 of each year, the state transportation commission shall act on the state
transportation program for the fiscal year commencing on the following October
1. In considering approval of the proposed projects of each intercity carrier,
eligible authority, or eligible governmental agency, other than projects that
are to be funded pursuant to under subsection (5), the state transportation
commission shall consider whether the projects comply with state law, are
within funds allocated in this section, whether they may be funded within the
approved budgets, whether there are intercity carriers, eligible authorities,
and eligible governmental agencies responsible to implement the projects, and
the recommendations of the department on individual projects. Upon On making
those determinations, the state transportation commission shall approve the
projects which best meet the criteria of this subsection.
(11) By October 1,
the department and each intercity carrier, eligible authority, or eligible
governmental agency shall enter into a contractual agreement or standardized
grant memorandum of agreement, which may cover 1 or more projects to be made
from this section in the applicable fiscal year to the intercity carrier,
eligible authority, or eligible governmental agency from the comprehensive
transportation fund.
(12) After a
multiyear public transportation program is approved by the state transportation
commission, the department may enter into a grant-in-aid instrument with an
eligible authority, intercity carrier, or eligible governmental agency
obligating the state to a minimum level of funding for approved projects to be
available over the multiyear period of the program. This obligation shall be is binding
upon on the
department as long as the provisions and conditions of the state transportation
commission approved program are carried out as agreed.
(13) Contracts and
grant memorandum agreements may be audited by the state transportation
commission's office of commission audits using rules promulgated by the United
States general accounting office General Accounting Office and the terms and
conditions of the respective contracts and agreements. Third party Third-party agreements
are subject to the review and approval of the department.
(14) Funds
distributed by the department may pay 100% of the portion of the cost not
eligible for reimbursement by the federal government for eligible capital
projects authorized by the state transportation commission using comprehensive
transportation funds or the proceeds of notes and bonds issued under section
18b. Priority for funding obligation shall must be given to capital projects for which federal
funds have been authorized.
(15) All approved
local bus new services initiated by eligible authorities and eligible
governmental agencies not in their fourth year or beyond of funding on October
1, 1988, shall must
be funded from subsection (4)(c)(iii). Local bus new services shall must be
funded under subsection (4)(c)(iii) in the following percentages of eligible operating expenses
as determined by the department:
(a) Startup 100%.
(b) First year 90%.
(c) Second year
80%.
(d) Third year 70%.
(e) Fourth year and
each year thereafter, as determined by and from funds provided under subsection
(4)(a). The balance of eligible operating expenses shall
must be met from local revenue sources
including farebox. The department shall pay up to 100% of eligible capital
expenses during the startup and first 3 years of service, after the third year,
the department shall participate in eligible capital expenses in the same
percentage as for other eligible authorities and eligible governmental
agencies. For the purposes of this subsection, eligible operating and capital
expenses means those expenses determined by the department as applicable to
existing eligible authorities and eligible governmental agencies. The
department shall prioritize annually all requests for comprehensive
transportation funds to institute new services under this subsection. First
priority shall must
be given to eligible authorities and eligible governmental agencies who
have not completed their first 3 years of service by October 1, 1998. New
services initiated by eligible authorities and eligible governmental agencies
under this subsection shall must meet all of the requirements of section 10.
(16) The department
shall pay up to 80% of the portion of the cost not eligible for reimbursement
by the federal government for intercity passenger operating assistance projects
authorized by the commission for the first 2 years of new services. For the third
year, eligible costs shall must be reimbursed at up to 60% of the portion of the
cost not eligible for reimbursement by the federal government. After the third
year, eligible costs shall must be reimbursed at up to 50% of the portion of the
cost not eligible for reimbursement by the federal government. Eligible costs
of services provided as of September 30, 1981, shall
must be reimbursed at up to 50% of the
portion of the cost not eligible for reimbursement by the federal government.
However, the amount of funds from the comprehensive transportation fund when
added to federal funds and local funds shall must not exceed the total operating assistance
project cost.
(17) A vehicle
purchased, leased, or rented after November 15, 1976, by an eligible authority
or eligible governmental agency with funds made available under this act and
not already committed under a contract in existence on November 15, 1976, shall must not be
used to provide service on a fixed schedule and fixed route for which a
passenger fee is charged unless the vehicle is accessible to a person using a
wheelchair from a roadway level or curb level, and has accommodations in which
1 or more wheelchairs can be secured.
(18) A vehicle used
to provide demand actuated service shall must not be purchased, leased, or rented by an
eligible authority or eligible governmental agency after October 1, 1978, with
funds made available under this act unless the eligible authority or eligible
governmental agency has submitted a plan to the department describing the
service to be provided by the demand actuated service to persons 65 years of
age or older and persons with disabilities within the applicable service area
and that plan has been approved by the department. The department shall approve
the plan as submitted or modified or shall reject the plan within not more than 60
days after the plan is submitted. A plan that describes the service to be
provided by the demand actuated service shall must not be approved by the department unless that
plan provides the following:
(a) That demand
actuated service will be provided to persons 65 years of age or older and
persons with disabilities residing in the entire service area subject to the
plan.
(b) That as a
minimum, demand actuated service will be provided to persons 65 years of age or
older and persons with disabilities during the same hours as service is
provided to all other persons in the service area subject to the plan.
(c) That the
average time period required for demand actuated service to persons 65 years of
age or older and persons with disabilities from the initiation of a service
request to arrival at the destination is equal to the average time period
required for demand actuated service provided to all other persons in the
service area subject to the plan.
(d) That the
eligible authority or eligible governmental agency submitting the plan has
established a local advisory council with not less than 50% of its membership
representing persons 65 years of age or older and persons with disabilities
within the service area subject to the plan and that the local advisory council
has had an opportunity to review and comment upon on the plan before its submission to the department.
Each eligible authority or eligible governmental agency jointly with the area
agency on aging shall approve at least 1 or the equivalent of 12% of the
membership of the local advisory council. Each advisory council comment shall must be
included in the plan when submitted to the department.
(19)
Notwithstanding subsection (18), a plan required by subsection (18) that is not
approved or rejected by the department within 60 days after submission shall be is considered
approved as submitted.
(20) Subsections
(17), (18), and (19) shall not apply to vehicles or facilities used to
transport persons by rail, air, or water or to vehicles of common carriers
licensed by the department.
(21) After January
1, 1979, the department shall submit an annual report to the legislature
detailing the service provided in the prior year for persons 65 years of age or
older and persons with disabilities by fixed route service and demand actuated
service. This report shall must include a record of passenger usage and shall must be
submitted by April 1 of each year.
(22)
Notwithstanding any other provision of this section, for each fiscal year that
begins after September 30, 2009, the governor and the state budget director shall must include
in the annual budget submitted to the legislature for the ensuing fiscal period
under section 18 of article V of the state constitution of 1963 an
appropriation from a fund or funds other than the comprehensive transportation
fund to a street railway organized under the
nonprofit street railway act, 1867 PA 35, MCL 472.1 to 472.27, part 5 of the recodified tax increment financing act, 2018
PA 57, MCL 125.4503 to 125.4527, of a sum equal to the difference
between the annual operating expenses of the street railway and revenue
received by the street railway during the same annual period, including, but
not limited to, tax increment revenues received by the street railway under section 23 of the nonprofit street railway act, 1867 PA
35, MCL 472.23. section 523 of the recodified
tax increment financing act, 2018 PA 57, MCL 125.4523. The appropriation
submitted in the budget under this section shall must not exceed 8% of the total private investment in
the street railway as determined by the department. A street railway is not an
eligible authority or eligible governmental agency for purposes of subdivision subsection (4)(a).
(23) For each
eligible authority and each eligible governmental agency within a public
transit region, a regional transit authority shall apply for, receive, and
disburse funds under section 8 of the regional transit authority act, 2012 PA 387, MCL 124.548.
(24) As
used in this section, "person with disabilities" means an individual
with a disability as that term is defined in 61 FR 56424 (November 1, 1996) and
49 CFR part 27.
Sec. 13c. (1) The neighborhood roads fund
is created in the state treasury as a separate fund.
(2) The state
treasurer must deposit money and other assets received from any source in the
fund. The state treasurer must direct the investment of money in the fund and
credit interest and earnings from the investments to the fund.
(3) Money in the
fund at the close of the fiscal year does not lapse to the general fund.
(4) The department
is the administrator of the fund for audits of the fund.
(5) Beginning with
the state fiscal year ending September 30, 2026 through the state fiscal year
ending September 30, 2030, the money received in the fund each state fiscal
year must be distributed as follows:
(a) $100,000,000.00
of the money received in the fund each state fiscal year must be deposited and
maintained in an account separate from all other money received in the fund.
The local bridge advisory board created in section 10(4) must expend money from
the account described in this subsection only for the repair of closed,
restricted, and critical bridges as determined by the local bridge advisory
board as provided in section 10(4) to (13).
(b) After the
distributions in subdivision (a), $40,000,000.00 shall be appropriated to the
local grade separation fund for use under section 11i.
(c) After the
distributions in subdivisions (a) and (b), $100,000,000.00 shall be
appropriated as follows:
(i) 35% to the comprehensive transportation
fund for use under section 10b for eligible authorities and eligible
governmental agencies that provide public transportation services with 5%
reserved for agencies in urbanized areas with a Michigan population less than
or equal to 100,000 200,000 and nonurbanized areas under 49 USC 5311.
(ii) 65% to the infrastructure projects
authority fund created in subsection (8).
(d) After the
distributions in subdivisions (a) to (c), 80% of the remainder of the money
received in the fund shall be appropriated as follows:
(i) 65% to county road commissions, to be
allocated in accordance with the provisions governing the distribution and use
of Michigan transportation fund revenue returned to counties under section 12.
(ii) 35% to city and village road agencies,
to be allocated in accordance with the provisions governing the distribution
and use of Michigan transportation fund revenue returned to cities and villages
under section 13.
(e) After the
distributions in subdivisions (a) to (c), 20% of the remainder of the money
received in the fund shall be appropriated to the state trunk line fund for use
under section 11.
(6) Beginning with
the state fiscal year ending September 30, 2031, the money received in the fund
each state fiscal year must be distributed as follows:
(a) $10,000,000.00
shall be appropriated to the local grade separation fund for use under section
11i.
(b) After the
distributions in subdivision (a), $70,000,000.00 shall be appropriated as
follows:
(i) 75% to the comprehensive transportation
fund for use under section 10b for eligible authorities and eligible
governmental agencies that provide public transportation services with 5%
reserved for agencies in urbanized areas with a Michigan population less than
or equal to 100,000 200,000 and nonurbanized areas under 49 USC 5311.
(ii) 25% to the infrastructure projects
authority fund created in subsection (8).
(c) After the
distributions in subdivisions (a) and (b), $100,000,000.00 shall be
appropriated as follows:
(i) 6.5% to county road commissions, to be
allocated in accordance with the provisions governing the distribution and use
of Michigan transportation fund revenue returned to counties under section 12.
(ii) 3.5% to city and village road agencies,
to be allocated in accordance with the provisions governing the distribution
and use of Michigan transportation fund revenue returned to cities and villages
under section 13.
(iii) The remainder shall be appropriated to
the state trunk line fund.
(d) After the
distributions in subdivisions (a) to (c), the remainder of the money received
in the fund shall be appropriated as follows:
(i) 71.5% shall be appropriated as follows:
(A) 65% to county
road commissions, to be allocated in accordance with the provisions governing
the distribution and use of Michigan transportation fund revenue returned to
counties under section 12.
(B) 35% to city and
village road agencies, to be allocated in accordance with the provisions
governing the distribution and use of Michigan transportation fund revenue
returned to cities and villages under section 13.
(ii) The remainder shall be appropriated to
the state trunk line fund.
(7) Matching funds
are not required from a local unit of government or county road commission as a
condition for expending money distributed under subsection (5) or (6). However,
any governmental entity expending money distributed under subsection (5) or (6)
may request matching funds from other sources.
(8) The
infrastructure projects authority fund is created in the state treasury as a
separate fund. The department is the administrator of the infrastructure
projects authority fund for audits of that fund. All of the following apply to
the infrastructure projects authority fund:
(a) Money
appropriated to the infrastructure projects authority fund and the interest
accruing to that fund must be expended by the department only in accordance
with subsections (9) and (10).
(b) Money remaining
in the infrastructure projects authority fund does not lapse to the general
fund at the end of the fiscal year.
(c) By December 30,
2026, and each calendar year thereafter that the infrastructure projects
authority fund receives appropriations, the department shall report to the
governor, the state transportation commission, and the legislature on the
status of projects funded by the infrastructure projects authority fund. The
report must include the status of all of the following activities for the
previous state fiscal year:
(i) The location of funded projects.
(ii) A listing of total money distributed to
each region.
(iii) Individual project funding amounts.
(iv) Projected individual project benefits.
(v) Project selection criteria.
(vi) A listing of individual project support.
(vii) A running total fund balance.
(viii) Any other pertinent fund status details.
(9) Of the money
deposited into the infrastructure projects authority fund each year, the
department may expend up to 20% of the money for payment of supplemental
operating grants to eligible authorities and eligible governmental entities,
subject to all of the following:
(a) Except as
provided in this subsection, the department must allocate supplemental
operating grants in a manner that conforms to, supplements, and is proportional
to the formula for the payment of operating grants to eligible authorities and
eligible governmental entities under section 10e(4)(a).
(b) The department
shall not expend any money under this subsection in a state fiscal year in
which the amount appropriated from the comprehensive transportation fund for
the payment of operating grants to eligible authorities and eligible
governmental entities under section 10e(4)(a) is less than the amount expended
under that subdivision in the state fiscal year ending September 30, 2026,
adjusted by the department each year by an amount equal to the annual
percentage increase in the Detroit Consumer Price Index for the preceding
calendar year.
(c) The department
must not award a supplemental operating grant to any eligible authority or
eligible governmental entity until the department has received and reviewed
financial documents that demonstrate that the eligible authority or government
entity maintains and is in compliance with a balanced budget plan for the
current fiscal year.
(d) Money granted
to an eligible authority or eligible governmental entity under this subsection
is supplemental and in addition to any money that the eligible authority or
eligible governmental entity may receive under section 10b.
(10) After making
allocations required under subsection (9) in a state fiscal year, the
department may make qualified investments in infrastructure mobility projects
consistent with section 10b to eligible authorities and eligible governmental
entities from the infrastructure projects authority fund. The department must
consider the following criteria to the extent reasonably applicable before
entering into a written agreement with an eligible authority or eligible
governmental entity for the qualified investment:
(a) Whether the
qualified investment is for the development, expansion, or enhancement of a
high-capacity mobility transportation project.
(b) Whether the
qualified investment is for the development, expansion, or enhancement of
regional or multijurisdictional high-capacity mobility transportation that
connects major population, employment, educational, health care, or other
activity centers.
(c) Whether the
qualified investment is for the development, expansion, or enhancement of
innovative and flexible mobility transportation intended to meet mobility needs
in lower density areas, for first- and last-mile transportation solutions, or
for other specialized public transportation purposes, including, but not
limited to, access to health care.
(d) The extent of
support for the qualified investment within the region impacted by the
qualified investment, including, but not limited to, support from local
government, an eligible authority or eligible governmental entity, and regional
anchor institutions such as major regional employers, local and regional
economic development organizations, and educational institutions.
(e) The degree of
financial participation from regional entities impacted by or supporting the
qualified investment, including, but not limited to, local units of
governments, public transportation providers, and other regional entities,
considering the financial capacity of the regional entities.
(f) The readiness,
financial feasibility, and financial sustainability of the qualified
investment, with the qualified investment facilitating a complete capital and
operating financial model for the project supported by the qualified
investment, with the highest priority for financial assistance provided when
the qualified investment is necessary to meet a capital or operating matching
requirement for federal funding.
(g) Whether the
proposed qualified investment will provide locally or regionally significant
benefits for the movement of people or goods, provide regional economic growth,
and increase the attractiveness of the region for population growth, job
growth, or tourism, with priority given to a qualified investment that includes
a transit, multimodal, or nonmotorized component.
(11) Grants and
qualified investments from the infrastructure projects authority fund may be
used to match federal aid, grants, or other assistance.
(12) As used in
this section:
(a)
"Fund" means the neighborhood roads fund unless otherwise specified.
(b)
"Multimodal" means the movement of persons by multiple forms of
transportation.
(c) "Qualified
investment" means a grant, loan, or other economic assistance provided by
the department to an eligible authority or eligible governmental entity under
this section for a project eligible for assistance under 49 USC 101 to 80504 or
23 USC 101 to 611.