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HOUSE BILL NO. 6037
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
June 03, 2026, Introduced by Rep. Kunse and referred to Committee on Transportation and
Infrastructure.
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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 section 10o (MCL 247.660o), as amended by 2022 PA 49.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10o. (1) Twenty-three to twenty-seven percent of the DOT-1
FHWA highway research, planning, and construction federal funds 2
appropriated to this state from the federal government for road and 3
bridge construction must be allocated to programs administered by 4
local jurisdictions after deduction of the following: 5
(a) Funds that are specifically allocated at the federal level 6
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to this state or local jurisdictions. 1
(b) Funds allocated by the department to this state and to 2
local jurisdictions through a competitive process. 3
(2) Federal aid excluded from the calculation of funding 4
allocated to programs administered by local jurisdictions in 5
subsection (1) includes, but is not limited to, congestion 6
mitigation and air quality funds, federal bridge funds, 7
transportation enhancement funds, funds distributed at the 8
discretion of the United States Secretary of Transportation, and 9
congressionally designated funds. 10
(3) The funds must be distributed to eligible local agencies 11
for transportation purposes in a manner consistent with state and 12
federal law. 13
(4) It is the intent of the legislature that federal aid to 14
highways allocated to local jurisdictions in subsection (1) be 15
distributed in a manner that produces a 25% average allocation of 16
applicable funds to programs for local jurisdictions in each fiscal 17
year through the fiscal year ending September 30, 2000. Beginning 18
in the fiscal year ending September 30, 1999, the average 19
allocation of applicable federal aid to highway funds to programs 20
for local jurisdictions must be the average of the amount 21
distributed to local jurisdictions under subsection (1) and 22
similarly calculated distributions in each succeeding fiscal year. 23
The average allocation percentage described in this subsection must 24
be adjusted to reflect any agreements made by the department with 25
local jurisdictions regarding the state buyout of local federal 26
aid. 27
(5) Subject to subsections (6) to (15), the department shall 28
award money from the state trunk line fund to local road agencies 29
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in exchange for federal aid obligation authority allocated to 1
local-agency projects as provided in this section, if allowed by 2
federal law and rules. 3
(6) The department must make available money from the state 4
trunk line fund in exchange for federal aid obligation authority 5
awarded to local road agencies in the amounts described in 6
subsection (8) unless the amount must be reduced to do either or 7
both do each of the following in the following order of priority: 8
(a) Match all available federal aid including 9
reapportionments, redistributions, or other awards of federal aid 10
obligation authority. 11
(b) Provide for debt service , the minimum state-funded 12
program, and the routine maintenance of state trunk lines. , 13
(c) Make available money from the state trunk line fund in 14
exchange for federal aid obligation authority awarded to local road 15
agencies in the amounts described in subsection (8). 16
(d) Provide for the minimum state funded program, 17
administration, and all other functions of the department. 18
(7) If the department reduces the amount of money available 19
from the state trunk line fund under subsection (6), the The 20
department must submit a letter to the chairpersons of the senate 21
and house of representatives transportation committees, the 22
chairpersons of the senate and house of representatives 23
transportation appropriations subcommittees, the senate majority 24
leader, and the speaker of the house of representatives explaining 25
why if the department is unable to match available federal aid or 26
perform its essential functions. 27
(8) Except if reduced under subsection (6), the The amount of 28
money available from the state trunk line fund in exchange for 29
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federal aid obligation authority awarded to local road agencies 1
must be not less than the following amounts: 2
(a) In the fiscal year ending September 30, 2023, 3
$25,000,000.00. 4
(b) In the fiscal year ending September 30, 2024, 5
$35,000,000.00. 6
(a) (c) In the fiscal year ending September 30, 2025, and in 7
every subsequent fiscal year, 2026, $45,000,000.00. 8
(b) Subject to subdivision (c), in the fiscal year ending 9
September 30, 2027, and in every subsequent fiscal year, 10
$50,000,000.00. 11
(c) If this state receives, in a fiscal year, federal aid 12
described in this section that is more than the amount received in 13
the fiscal year ending September 30, 2027, the minimum amount 14
described in subdivision (b) is increased for that fiscal year by 15
the same percentage as the increase in federal aid. 16
(9) Local road agencies may apply for state money in exchange 17
for 100% of the federal aid obligation authority allocated by the 18
department to a local road agency project in a metropolitan 19
planning organization transportation improvement program or in the 20
rural transportation improvement program, in the manner and on the 21
schedule determined by the department. The department must publish 22
announcements, instructions, forms, and deadlines on its website. 23
If applications are received that request more state money than is 24
available to be exchanged in a fiscal year, awards must be made in 25
the order received. 26
(10) State money must be exchanged with local road agencies 27
for federal aid obligation authority in an amount equal to 90 cents 28
per dollar of all federal aid obligation authority allocated in the 29
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approved transportation improvement plan to each project for which 1
authority is exchanged. 2
(11) The department must pay state money exchanged for federal 3
aid obligation authority to local road agencies when sufficient 4
federal aid obligation authority is received from the Federal 5
Highway Administration to cover the exchanges, not including any 6
year-end redistributions. 7
(12) The first priority for the use of state money exchanged 8
for federal aid obligation authority must be the local road agency 9
project for which the federal aid obligation authority was 10
originally proposed. If the state money exchanged for federal aid 11
obligation authority exceeds the cost of the original project, any 12
surplus must be applied to federal-aid-eligible projects by the 13
local road agency or returned to the department. Completed work 14
must be reported to the transportation asset management council 15
investment reporting tool or any successor system. 16
(13) State money exchanged for federal aid obligation 17
authority must be expended not later than 3 years after the 18
exchange. If the project for which federal aid obligation authority 19
was exchanged cannot be completed within 3 years, the local road 20
agency must notify the department and its metropolitan planning 21
agency or rural task force and identify an alternate project 22
eligible for federal aid that can be constructed within the 23
original 3-year period, or return the money to the department. 24
(14) In accordance with 23 USC 112, 23 CFR 635.104(b), and 25
Federal Highway Administration Directive 5060.1, a local road 26
agency that is awarded state money in exchange for federal aid 27
obligation authority shall follow the policies adopted by the 28
department that govern the number of force accounts and the total 29
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amount of money spent on force account project cost authorizations 1
in a fiscal year. For each fiscal year in which a local road agency 2
is awarded state money in exchange for federal aid obligation 3
authority, the local road agency must certify to the department 4
that the limits in this subsection are not exceeded. This 5
subsection applies only to state money awarded in exchange for 6
federal aid obligation authority as described in this section and 7
not to any money garnered through any other means. 8
(15) Contracts between local road agencies and contractors for 9
projects funded from state money exchanged for federal aid 10
obligation authority must contain a federal wage and benefits 11
schedule consistent with, and incorporating the requirements of, 12
Section IV IV.1 of Form FHWA 1273, revised May 1, 2012, or any 13
successor form, and provide that covered workers are third-party 14
beneficiaries of these contract requirements. 15
(16) As used in this section: 16
(a) "Federal aid obligation authority" means federal aid 17
obligation authority and an equal amount of contract authority. 18
(b) "Minimum state-funded program" includes, but is not 19
limited to, preservation, preventive maintenance, maintenance, 20
operations, safety, administration, and all other essential 21
functions not eligible for federal aid, as determined by the 22
department. 23