Bill Text: MI HB4185 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Transportation; funds; requirement for state subsidized transit agencies to supplement budget through ridership fares; provide for, and provide penalties for noncompliance. Amends sec. 10e of 1951 PA 51 (MCL 247.660e).
Spectrum: Partisan Bill (Republican 18-0)
Status: (Introduced - Dead) 2009-02-10 - Printed Bill Filed 02/06/2009 [HB4185 Detail]
Download: Michigan-2009-HB4185-Introduced.html
HOUSE BILL No. 4185
February 5, 2009, Introduced by Reps. Agema, McMillin, Crawford, Opsommer, Lund, Meltzer, Marleau, Haines, Meekhof, Knollenberg, Tyler, Moss, Ball, Kurtz, Daley, Calley, Haveman and Walsh and referred to the Committee on Transportation.
A bill to amend 1951 PA 51, entitled
"An act to provide for the classification of all public roads,
streets, and highways in this state, and for the revision of that
classification and for additions to and deletions from each
classification; to set up and establish the Michigan transportation
fund; to provide for the deposits in the Michigan transportation
fund of specific taxes on motor vehicles and motor vehicle fuels;
to provide for the allocation of funds from the Michigan
transportation fund and the use and administration of the fund for
transportation purposes; to 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 section 10e (MCL 247.660e), as amended by 2008 PA 487.
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 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 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 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 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 which provides public transportation services
in urbanized areas under 49 USC 5307, with a Michigan population
greater than 100,000 shall receive a grant of up to 50% of their
eligible operating expenses as defined by the state transportation
department.
(ii) For the fiscal year ending September 30, 1998, and each
fiscal year thereafter, each eligible authority and eligible
governmental agency which provides public transportation services
in urbanized areas with a Michigan population less than or equal to
100,000 and nonurbanized areas under 49 USC 5311, shall receive a
grant of up to 60% of their eligible operating expenses as defined
by the state transportation department. For purposes of receiving a
grant under this subparagraph in nonurbanized areas, eligible costs
of services provided by water vehicle shall be reimbursed at not
less than 50% of the portion of the costs not eligible for
reimbursement by the federal government.
(iii) Funds shall 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 FRP 56424 (November 1, 1996) and 49 CFR part
27. The preferential fares shall 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, 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 be maintained for all fiscal
years by the eligible authority and eligible governmental agency.
Reductions in this ratio shall 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 40 days after
the end of each fiscal year quarter. The progress report shall be
made on forms authorized by the United States department of
transportation under the provisions of the surface transportation
and uniform relocation assistance act of 1987, Public Law 100-17,
101 Stat. 132.
(vii) The department shall periodically adjust or redistribute
comprehensive transportation funds previously distributed under
this subdivision.
(viii) Except as provided in subsection (15), for each fiscal
year that begins after September 30, 2009, the department shall
assure that each eligible authority and eligible governmental
agency receiving comprehensive transportation funds for eligible
operating expenses is receiving at least 20% of eligible operating
expenses from farebox revenue. Each eligible authority and eligible
governmental agency receiving comprehensive transportation funds
for eligible operating expenses shall submit documentation to the
department sufficient for the department to make this
determination. The department shall reduce the funds received by
eligible authorities and eligible governmental agencies that do not
meet this requirement by the amount that the eligible authority and
eligible governmental agency would have received from the
department if the requirement of this subsection had been met.
(b) For the 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 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 fiscal year ending September 30, 1998, and each fiscal year
thereafter, funds shall 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 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 be funded with not
less than $3,600,100.00 from funds distributed under this
subdivision. Funds shall be distributed according to guidelines
developed by the department based upon the following
considerations:
(A) Proposals for coordinated specialized services assistance
funding shall 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 be reviewed and approved
by the bureau of urban and public transportation of the department.
Upon 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 be reviewed and
approved by the bureau of urban and public transportation of the
department. Upon 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 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, 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 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 be expended by that authority or agency solely for
capital projects which 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 which 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 not be expended by the
authority or agency and be 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
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 be as prescribed by the federal transportation
improvement program insofar as practical and shall include project
descriptions, funding sources, and justification for each line
item, and summary budgets based on distributions anticipated under
subsection (4). The program shall 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 be in sufficient
detail to permit the state transportation 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 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
be prepared on similar format to the local transportation programs,
and shall 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 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
prepare and file with the commission the proposed state
transportation program for the next succeeding fiscal year. The
proposed state transportation program shall 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 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 which are to be funded pursuant to 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
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 state
transportation 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 binding upon the
state transportation 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 and the terms and conditions of the respective
contracts and agreements. 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 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 be funded from
subsection (4)(c)(iii). Local bus new services shall 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 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 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 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 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 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 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 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, which funds were not already
committed under a contract in existence on November 15, 1976, shall
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 shall 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 which vehicle is
used to provide demand actuated service unless the eligible
authority or eligible governmental agency has submitted a plan to
the state transportation 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 60 days after the plan is submitted. A plan
which describes the service to be provided by the demand actuated
service shall 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 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
be included in the plan when submitted to the department.
(19) Notwithstanding subsection (18), a plan required by
subsection (18) which is not approved or rejected by the state
transportation department within 60 days after submission shall be
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 state
transportation 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 include a record of passenger usage and
shall 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 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, 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. The
appropriation submitted in the budget under this section shall 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 (4)(a).
