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JJR H07063'26_HB6115_INTR_1 hn1de3
HOUSE BILL NO. 6115
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 18, 2026, Introduced by Reps. DeSana, Herzberg, Skaggs, Wegela, Miller, Mentzer and Fox
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 sections 12 and 13 (MCL 247.662 and 247.663), section
12 as amended by 2023 PA 248 and section 13 as amended by 2020 PA
153.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 12. (1) The amount distributed to the county road 1
commissions must be returned to the county treasurers in the 2
manner, for the purposes, and under the terms and conditions 3
specified in this section. The department and the County Road 4
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Association of Michigan shall jointly develop incentives for 1
counties to establish statewide purchasing pools for the more 2
efficient use of Michigan transportation funds. 3
(2) Each county road commission shall must be reimbursed in an 4
amount up to $10,000.00 per year for the sum paid to a licensed 5
professional engineer employed or retained by the county road 6
commission in the previous year. The sum must be returned to each 7
county road commission certified by the department as complying 8
with this subsection regarding the employment of an engineer. 9
(3) An amount equal to 1% of the total amount returned to the 10
county road commissions from the Michigan transportation fund 11
during the prior calendar year must be withheld annually from the 12
counties' November monthly distribution provided for in section 17, 13
and the amount must be returned to the county road commissions for 14
snow removal purposes as provided in section 12a. 15
(4) An amount equal to 10% of the total amount returned to the 16
county road commissions from the Michigan transportation fund must 17
be returned to each county road commission having county primary, 18
or county local road, or both, mileage in the urban areas as 19
determined under section 12b. This sum must be distributed as 20
provided in section 12b. The return must be in addition to the 21
amounts provided in subsections (6) and (7) and for the purposes 22
stated in those subsections. 23
(5) An amount equal to 4% of the total amount returned to the 24
county road commissions from the Michigan transportation fund must 25
be returned to the county road commissions in the same percentages 26
under subsection (7). All money returned to the county road 27
commissions under this subsection must be expended by the county 28
road commissions for the preservation, construction, acquisition, 29
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and extension of county local road systems and is in addition to 1
the amounts provided in subsection (7). 2
(6) Except as otherwise provided in subsection (23), 75% of 3
the remainder of the total amount to be returned to the counties 4
must be expended by each county road commission for the 5
preservation, construction, acquisition, and extension of the 6
county primary road system, including the acquisition of a 7
necessary right of way for the system, work incidental to the 8
system, and a roadside park or motor parkway appurtenant to the 9
system, and must be returned to the counties as follows: 10
(a) Three-fourths of the amount in proportion to the amount 11
received within the respective county during the 12 months next 12
preceding the date of each monthly distribution, as specific taxes 13
upon registered motor vehicles under the Michigan vehicle code, 14
1949 PA 300, MCL 257.1 to 257.923. 15
(b) One-tenth of the amount in the same proportion that the 16
total mileage in the county primary road system of each county 17
bears to the total mileage in all of the county primary road 18
systems of this state. 19
(c) One eighty-third of the remaining 15% of the amount to 20
each county. 21
(7) Except as otherwise provided in subsection (23), the 22
balance of the remainder of the total amount to be returned to 23
counties must be expended by each county road commission for the 24
preservation, construction, acquisition, and extension of the 25
county local road system as defined by this act, including the 26
acquisition of a necessary right of way for the system, work 27
incidental to the system, and a roadside park or motor parkway 28
appurtenant to the system, and must be returned to the counties as 29
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follows: 1
(a) Sixty-five percent of the amount in the same proportion 2
that the total mileage in the county local road system of each 3
county bears to the total mileage in all of the county local road 4
systems of this state. 5
(b) Thirty-five Subject to subsection (25), 35% percent of the 6
amount in the same proportion that the total population outside of 7
incorporated municipalities in each county bears to the total 8
population outside of incorporated municipalities in all of the 9
counties of this state, according to the most recent statewide 10
federal census as certified at the beginning of the state fiscal 11
year. 12
(8) Money deposited in, or becoming a part of the county road 13
funds of a board of county road commissioners must be expended 14
first for the payment of principal and interest on the bonds, for 15
the payment of contractual contributions pledged for the payment of 16
bonds, for debt service requirements for the payment of contractual 17
contributions pledged for the payment of bonds, and for debt 18
service requirements for the payment of notes and loans in the 19
following order of priority: 20
(a) For the payment of contributions required to be made by a 21
board of county road commissioners under a contract entered into 22
under 1941 PA 205, MCL 252.51 to 252.64, that have been pledged for 23
the payment of the principal and interest on bonds issued under 24
that act, or for the payment of total debt service requirements 25
upon notes issued by a board of county road commissioners under 26
1943 PA 143, MCL 141.251 to 141.254. 27
(b) For the payment of principal and interest on bonds issued 28
under section 18c, and the payment of contributions of a board of 29
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county road commissioners made under contracts entered into under 1
section 18d that are pledged to the payment of principal and 2
interest on bonds issued after June 30, 1957, under the 3
authorization of section 18c and contracts executed under section 4
18c. 5
(c) For the payment of principal and interest upon loans 6
received under section 11(5), to the extent other funds have not 7
been made available for that payment. 8
(9) Beginning November 1, 2008, no more than 50% per year of 9
the amount returned to a county for use on the county primary road 10
system may be expended, with or without matching, on the county 11
local road system of that county. Except as otherwise provided in 12
this subsection, beginning September 30, 2010, no No more than 30% 13
per year of the amount returned to a county for use on the county 14
primary road system may be expended, with or without matching, on 15
the county local road system of that county. An additional amount, 16
not to exceed 20% per year of the amount returned to a county for 17
use on the county primary road system, may be expended on the 18
county local road system of that county if there is an emergency or 19
if the county road commission determines that an additional 20% may 20
be expended on the county local road system. The county road 21
commission may attach any conditions to its determination if the 22
determination is for nonemergency purposes, including, but not 23
limited to, a requirement that the additional 20% expended on the 24
county local road system only be used to supplement money from 25
other sources. No more than 15% per year of the amount returned to 26
a county for expenditure on the county local road system may be 27
used, with or without matching, on the county primary road system 28
of that county, and not to exceed an additional 15% per year of the 29
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amount returned to a county for expenditure on the county local 1
road system, may, in case of an emergency or with the approval of 2
the county road commission, be expended, with or without matching, 3
on the county primary road system of that county. An amount 4
returned to a county for and on account of county local roads under 5
this section that is in excess of the total amount paid into the 6
county treasury each year by all of the townships of that county 7
for and on account of the county local roads under section 14(6) 8
may be transferred to and expended on the county primary road 9
system of that county. 10
(10) Not less than 20% per year of the money returned to a 11
county by this section must be expended for snow and ice removal, 12
the reconstruction of an existing highway if not in conflict with 13
its asset management plan as provided in section 9a, and the 14
acquisition of a necessary right of way for those highways, and 15
work incidental to those highways, or for the servicing of bonds 16
issued by the county for these purposes. A county may expend 17
surplus money for the development, construction, or repair of an 18
off-street parking facility. 19
(11) Not more than 5% per year of the money returned to a 20
county for the county road system must be expended for the 21
maintenance, improvement, or acquisition of appurtenant roadside 22
parks and motor parkways. 23
(12) Money returned to a county must be expended by the county 24
road commission for the purposes provided in this section and must 25
be deposited by the county treasurer in a designated county 26
depository, in a separate account to the credit of the county road 27
fund, and must be paid out only on the order of the county road 28
commission, and interest accruing on the money must become a part 29
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of, and be deposited with the county road fund. 1
(13) In a county to which money is returned under this 2
section, the function of the county road commission is limited to 3
the formation of policy and the performance of the official duties 4
imposed by law and delegated by the county board of commissioners. 5
A member of the county road commission shall not be employed 6
individually in any other capacity for other duties with the county 7
road commission. 8
(14) A county road commission may enter into an agreement with 9
a county road commission of another county, with a city or village, 10
or with the department, to perform work on a highway, road, or 11
street within the limits of that county or of another county. The 12
agreement may provide for the performance by each contracting party 13
of the work contemplated by the contract including engineering 14
services and the acquisition of rights of way in connection with 15
the work contemplated, by purchase or condemnation, by any of the 16
contracting parties in its own name and the agreement may provide 17
for joint participation in the costs. 18
(15) Money distributed from the Michigan transportation fund 19
may be expended for construction purposes on county local roads 20
only to the extent matched by money from other sources. However, 21
Michigan transportation funds may be expended for the construction 22
of bridges on the county local roads in an amount not to exceed 75% 23
of the cost of the construction of local road bridges. The match 24
may exceed 75% of the cost of construction in the case of a public 25
emergency. 26
(16) Notwithstanding any other provision of this act, at least 27
90% of the state revenue returned annually to the county road 28
commission from the Michigan transportation fund less the amounts 29
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described in subdivisions (a) to (e) must be expended annually by 1
the county road commission for the preservation of highways, roads, 2
streets, and bridges, and for the payment of contractual 3
contributions pledged for the payment of bonds or portions of 4
bonds, debt service requirements for the payment of bonds or 5
portions of bonds, and debt service requirements for the payment of 6
notes and loans or portions of notes and loans issued or received 7
after July 1, 1983, for the purpose of providing money for the 8
preservation of highways, roads, streets, and bridges. If an 9
appropriate certificate is filed under subsection (18) but only to 10
the extent necessary, this subsection does not prohibit the use of 11
any amount of state revenue returned annually to the county road 12
commissions for the payment of contractual contributions pledged 13
for the payment of bonds, for debt service requirements for the 14
payment of bonds, and for debt service requirements for the payment 15
of notes or loans, whenever issued or received, as specified under 16
subsection (8). The amounts that are deducted from the state 17
revenue returned to a county road commission from the Michigan 18
transportation fund, for the purpose of the calculation required by 19
this subsection are as follows: 20
(a) Amounts expended for the purposes described in subsection 21
(8) for bonds, notes, loans, or other obligations issued or 22
received before July 2, 1983. 23
(b) Amounts expended for the administrative costs of the 24
county road commission. 25
(c) Amounts expended for capital outlay projects for equipment 26
and buildings, and for the payment of contractual contributions 27
pledged for the payment of bonds, for debt service requirements for 28
the payment of bonds, and for debt service requirements for the 29
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payment of notes and loans issued or received after July 1, 1983, 1
for the purpose of providing funds for capital outlay projects for 2
equipment and buildings. 3
(d) Amounts expended for projects vital to the economy of the 4
local area or the safety of the public in the local area. Before 5
these amounts can be deducted, the governing body over the county 6
road commission or the county road commission, as applicable, must 7
pass a resolution approving these projects. This resolution must 8
state the projects that will be funded and the cost of each 9
project. A copy of each approved resolution must be forwarded 10
immediately to the department. 11
(e) Amounts expended in urban areas as determined under 12
section 12b. 13
(17) Notwithstanding any other provision of this act, except 14
as provided in this subsection, a county road commission shall 15
annually expend at least 90% of the federal revenue distributed to 16
the county road commission for highways, roads, streets, and 17
bridges, less the amount expended on urban routes for purposes 18
other than preservation and the amount expended for hard-surfacing 19
of gravel roads on the federal-aid system, on the preservation of 20
highways, roads, streets, and bridges. A county road commission may 21
expend in 1 year less than 90% of the federal revenue distributed 22
to the county road commission for highways, roads, streets, and 23
bridges, less the amount expended on urban routes for purposes 24
other than preservation and the amount expended for hard-surfacing 25
of gravel roads on the federal-aid system, on the preservation of 26
highways, roads, streets, and bridges, if that year is part of a 3-27
year period in which at least 90% of the total federal revenue 28
distributed in the 3-year period to the county road commission for 29
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highways, roads, streets, and bridges, less the amount expended on 1
urban routes for purposes other than preservation purposes and the 2
amount expended for hard-surfacing of gravel roads on the federal-3
aid system, is expended on the preservation of highways, roads, 4
streets, and bridges. If a county road commission expends in 1 year 5
less than 90% of the federal revenue distributed to the county road 6
commission for highways, roads, streets, and bridges, less the 7
amount expended on urban routes for purposes other than 8
preservation and the amount expended for hard-surfacing of gravel 9
roads on the federal-aid system, on the preservation of highways, 10
roads, streets, and bridges and that year is not a part of a 3-year 11
period in which at least 90% of the total federal revenue 12
distributed in the 3-year period to the county road commission for 13
highways, roads, streets, and bridges, less the amount expended on 14
urban routes for purposes other than preservation and the amount 15
expended for hard-surfacing of gravel roads on the federal-aid 16
system, is expended on the preservation of highways, roads, 17
streets, and bridges, the county road commission shall expend in 18
each year subsequent to the 3-year period 100%, or less in 1 year 19
if sufficient for the purposes of this subsection, of the federal 20
revenue distributed to the county road commission for highways, 21
roads, streets, and bridges, less the amount expended on urban 22
routes for purposes other than preservation and the amount expended 23
for hard-surfacing of gravel roads on the federal-aid system, on 24
the preservation of highways, roads, streets, and bridges until the 25
average percentage spent on the preservation of highways, roads, 26
streets, and bridges in the 3-year period and the subsequent years, 27
less the amount expended on urban routes for purposes other than 28
preservation and the amount expended for hard-surfacing of gravel 29
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roads on the federal-aid system, is at least 90%. A year may be 1
included in only one 3-year period for the purposes of this 2
subsection. The requirements of this subsection are waived if 3
compliance would cause the county road commission to be ineligible 4
for federal revenue under federal law, but only to the extent 5
necessary to make the county road commission eligible for that 6
revenue under federal law. For the purpose of the calculations 7
required by this subsection, the amount expended on urban routes by 8
a county road commission for purposes other than preservation and 9
the amount expended for hard-surfacing of gravel roads on the 10
federal-aid system must be deducted from the total federal revenue 11
distributed to the use of the county road commission. As used in 12
this subsection, "urban routes" means those portions of 2-lane 13
county primary roads within an urban area that have average daily 14
traffic in excess of 15,000. 15
(18) A county road commission shall certify to the department 16
on or before the issuance of any bonds or notes issued after July 17
1, 1983, under 1943 PA 143, MCL 141.251 to 141.254, 1941 PA 205, 18
MCL 252.51 to 252.64, or section 18c or 18d, for purposes other 19
than the preservation of highways, roads, streets, and bridges and 20
purposes other than the purposes specified in subsection (16)(c) 21
that its average annual debt service requirements for all bonds and 22
notes or portions of bonds and notes issued after July 1, 1983, for 23
purposes other than the preservation of highways, roads, streets, 24
and bridges and other than for the purposes specified in subsection 25
(16)(c), including the bond or note to be issued does not exceed 26
10% of the money returned to the county road commission under this 27
act, less the amounts specified in subsection (16)(a), (b), and (c) 28
during the last completed fiscal year of the county road 29
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commission. If the purpose for which the bonds or notes are issued 1
is changed after the issuance of the notes or bonds, the change 2
must be made in a manner that maintains compliance with the 3
certification required by this subsection, as of the date the 4
certificate was originally issued, but the change does not 5
invalidate or otherwise affect the bonds or notes with respect to 6
which the certificate was issued or the obligation to pay debt 7
service on the bonds or notes. A certification under this 8
subsection is conclusive as to the matters stated in the 9
certification for purposes of the validity of bonds and notes. 10
(19) In each charter county to which funds are returned under 11
this section, the responsibility for road improvement, 12
preservation, and traffic operation work, and the development, 13
construction, or repair of off-road parking facilities and 14
construction or repair of road lighting must be coordinated by a 15
single administrator designated by the county executive who is 16
responsible for and represents the charter county in transactions 17
with the department under this act. 18
(20) Not more than 10% per year of all of the money received 19
by and returned to a county from any source for the purposes of 20
this section may be expended for administrative expenses. A county 21
that expends more than 10% for administrative expenses in a year is 22
subject to section 14(5) unless a waiver is granted by the 23
department of treasury. As used in this subsection, "administrative 24
expenses" means expenses that are not assigned including, but not 25
limited to, specific road construction or preservation projects and 26
are often referred to as general or supportive services. 27
Administrative expenses do not include net equipment expense, net 28
capital outlay, debt service principal and interest, and payments 29
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to other state or local offices that are assigned, but not limited 1
to, specific road construction projects or preservation activities. 2
(21) In addition to the financial compliance audits required 3
by law, the department may conduct performance audits and make 4
investigations of the disposition of all state money received by 5
county road commissions, county boards of commissioners, or any 6
other county governmental agency acting as the county road 7
authority, for transportation purposes to determine compliance with 8
the terms and conditions of this act. Performance audits must be 9
conducted according to government auditing standards issued by the 10
United States General Accounting Office. The department shall 11
develop performance audit procedures and reporting requirements 12
sufficient to determine whether money expended under this section 13
was expended in compliance with this act. by September 1, 2012 and 14
shall report to the transportation committees of the senate and 15
house of representatives no later than October 1, 2012 on the 16
additional audit procedures and reporting requirements. The 17
department shall provide notice to the county road commission, 18
county board of commissioners, or any other county governmental 19
agency acting as the county road authority, as applicable, of the 20
standards to be used for audits performed under this subsection. 21
The notice must be provided 6 months before the fiscal year in 22
which the audit is conducted. The department shall notify the 23
county road commission, county board of commissioners, or any other 24
county governmental agency acting as the county road authority of 25
any subsequent changes to the standards. County road commissions, 26
county boards of commissioners, or any other county governmental 27
agencies acting as county road authorities, as applicable, shall 28
make available to the department the pertinent records for the 29
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audit. Performance audits may be performed at the discretion of the 1
department or on receiving a request from the speaker of the house 2
of representatives or the senate majority leader. 3
(22) Of the amounts appropriated for a county primary or local 4
road system under this section, where possible, a county road 5
commission shall secure pavement warranties for full replacement or 6
appropriate repair for contracted construction work on pavement 7
projects whose cost exceeds $2,000,000.00 and projects for new 8
construction or reconstruction undertaken after April 1, 2016, if 9
allowed by the Federal Highway Administration and the department. A 10
county road commission shall submit a proposed warranty program to 11
the department for approval no later than April 1, 2016. If a 12
proposed warranty program submitted under this subsection is 13
approved by the department, the county road commission shall 14
implement the program no later than 1 year after the approval. A 15
county road commission shall include a list of all warranties that 16
were secured under this subsection and indicate whether any of 17
those warranties were redeemed with in the report required under 18
section 14(3), and shall also list all pavement projects whose cost 19
exceeds $2,000,000.00 for which a warranty was not secured. The 20
list must include, but is not limited to, all of the following 21
information: 22
(a) The type of project. 23
(b) The cost or estimated cost of the project. 24
(c) The expected lifespan of the project. 25
(d) Whether or not the project met or is currently meeting its 26
expected lifespan. 27
(e) If the project failed to meet or is not meeting its 28
expected lifespan, the cause of the failure and the cost to replace 29
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or repair the project. 1
(f) The entity responsible for paying the cost of replacing or 2
repairing the project. 3
(23) Once the asset management plan for a county as described 4
in section 9a has been approved, amounts distributed to a county 5
under this section must be expended toward attainment of the 6
condition goals in the asset management plan and as otherwise 7
required by this act. 8
(24) A county road commission may use a portion of the amount 9
returned to the county under this section for the payment of debt 10
service on bonds, notes, or other obligations. 11
(25) If a county has a township that has any part of an 12
international airport in the township's borders, and that 13
international airport has more than 2,000,000 enplaned passengers 14
in the most recently completed calendar year for which Federal 15
Aviation Administration information is available, all of the 16
following apply: 17
(a) That township's population must be multiplied by 3 for the 18
purposes of calculating the total population outside of 19
incorporated municipalities within that county under subsection 20
(7)(b). 21
(b) Any funding increase as a result of subdivision (a) must 22
be used by the county for transportation infrastructure purposes 23
within that township, including road construction, reconstruction, 24
resurfacing, maintenance, traffic signal improvements, safety 25
improvements, and drainage on county roads in the township bearing 26
airport-related traffic. 27
(c) Each county that receives increased funding under 28
subdivision (a) must submit a report for each year the county 29
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received increased funding to the department and the legislature 1
detailing how the increased funding was expended, the road 2
condition ratings on primary airport access routes, and estimated 3
traffic volume on primary airport access routes. 4
(26) By not later than February 1 of each year, the department 5
shall certify to the state transportation commission and the 6
legislature which townships qualify for the population multiplier 7
under subsection (25). 8
Sec. 13. (1) The amount distributed to cities and villages 9
must be returned to the treasurers of the cities and villages in 10
the manner, for the purposes, and under the terms and conditions 11
specified in this section. The amount received by a newly 12
incorporated municipality must be in place of any other direct 13
distribution of money from the Michigan transportation fund. The 14
population of a newly incorporated municipality as determined under 15
this section must be added to the total population of all 16
incorporated cities and villages in this state in computing the 17
amounts to be returned under this section to each municipality in 18
the this state. Major street mileage, local street mileage, and 19
equivalent major mileage, if applicable, must be determined by the 20
department before the next month for which distribution is made 21
following the effective date of incorporation of a newly 22
incorporated municipality. 23
(2) From the amount available for distribution to cities and 24
villages during each December, an amount equal to 0.7% of the total 25
amount returned to all cities and villages under subsections (3) 26
and (4) during the previous calendar year must be withheld. The 27
amount withheld must be used to partially reimburse cities and 28
villages located in counties that are eligible for snow removal 29
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funds under section 12a and that have costs for winter maintenance 1
on major and local streets that are greater than the statewide 2
average. The distributions must be made annually during February 3
and must be calculated separately for the major and local street 4
systems but may be paid in a combined warrant. The distribution to 5
a city or village must be equal to 1/2 of its winter maintenance 6
expenditures after deducting the product of its total earnings 7
under subsections (3) and (4) multiplied by 2 times the average 8
municipal winter maintenance factor. Winter maintenance 9
expenditures must be determined from the street financial reports 10
for the most current fiscal years ending before July 1. A city or 11
village that does not submit a street financial report for the 12
fiscal year ending before July 1 by the subsequent December 31 is 13
ineligible for the winter maintenance payment that is to be based 14
on that street financial report. The department shall determine the 15
average municipal winter maintenance factor annually by dividing 16
the total expenditures of all cities and villages on winter 17
maintenance of streets and highways by the total amount earned by 18
all cities and villages under subsections (3) and (4) during the 12 19
months. If the sum of the distributions to be made under this 20
subsection exceeds the amount withheld, the distributions to each 21
eligible city and village must be reduced proportionately. If the 22
sum is less than the amount withheld, the balance must be added to 23
the amount available for distribution under subsections (3) and (4) 24
during the next month. The distributions are for use on the major 25
and local street systems respectively and are subject to the same 26
provisions as money returned under subsections (3) and (4). 27
(3) Seventy-five percent Subject to subsection (17), 75% of 28
the remaining amount to be returned to the cities and villages, 29
19
JJR H07063'26_HB6115_INTR_1 hn1de3
after deducting the amounts withheld under subsection (2), must be 1
returned 60% in the same proportion that the population of each 2
bears to the total population of all cities and villages, and 40% 3
in the same proportion that the equivalent major mileage in each 4
bears to the total equivalent major mileage in all cities and 5
villages. The amount returned under this subsection must be used by 6
each city and village for the following purposes in the following 7
order of priority: 8
(a) For the payment of contributions required to be made by a 9
city or village under the provisions of contracts previously 10
entered into under 1941 PA 205, MCL 252.51 to 252.64, that have 11
been previously pledged for the payment of the principal and 12
interest on bonds issued under that act; or for the payment of the 13
principal and interest upon bonds issued by a city or village under 14
1952 PA 175, MCL 247.701 to 247.707. 15
(b) Payment For the payment of obligations of the city or 16
village on highway projects undertaken by the city or village 17
jointly with the department. 18
(c) For the payment of principal and interest on loans 19
received under section 11(5), to the extent other money has not 20
been made available for that payment. 21
(d) Except as otherwise provided in this subdivision, for the 22
preservation, construction, acquisition, and extension of the major 23
street system as defined by this act including the acquisition of a 24
necessary right of way for the system, work incidental to the 25
system, and an appurtenant roadside park or motor parkway, of the 26
city or village and for the payment of the principal and interest 27
on that portion of the city's or village's general obligation bonds 28
that are attributable to the construction or reconstruction of the 29
20
JJR H07063'26_HB6115_INTR_1 hn1de3
city's or village's major street system. However, once an asset 1
management plan described in section 9a has been approved, funds 2
shall must be used for the preservation, construction, and 3
acquisition of the street system as provided in subsection (16) or 4
for an emergency as described in section 11c. Not more than 5% per 5
year of the money returned to a city or village by this subsection 6
shall may be expended for the preservation or acquisition of 7
appurtenant roadside parks and motor parkways. Surplus money may be 8
expended for the development, construction, or repair of off-street 9
parking facilities, and the construction or repair of street 10
lighting, and transfer to the local street system under subsection 11
(6). 12
(e) For capital outlay projects for equipment and buildings, 13
contributions pledged for the payment of loans and for the payment 14
of contractual debt service requirements for the payment of bonds 15
for the purpose of providing money for capital outlay projects for 16
equipment and buildings necessary to the development and 17
maintenance of the road system so long as if amounts allocated 18
under this subdivision are used for transportation purposes. 19
(4) The remaining amount to be returned to incorporated cities 20
and villages must be expended in each city or village for the 21
preservation, construction, acquisition, and extension of the local 22
street system of the city or village, including the acquisition of 23
a necessary right of way for the system, work incidental to the 24
system, and subject to subsection (5), for the payment of the 25
principal and interest on the portion of the city's or village's 26
general obligation bonds that are attributable to the construction 27
or reconstruction of the city's or village's local street system. 28
However, once an asset management plan described in section 9a has 29
21
JJR H07063'26_HB6115_INTR_1 hn1de3
been approved, funds shall must be used for the preservation, 1
construction, and acquisition of the street system as provided in 2
subsection (16) or for an emergency as described in section 11c. 3
The Subject to subsection (17), the amount returned under this 4
subsection must be returned to the cities and villages 60% in the 5
same proportion that the population of each bears to the total 6
population of all incorporated cities and villages in this state, 7
and 40% in the same proportion that the total mileage of the local 8
street system of each bears to the total mileage in the local 9
street systems of all cities and villages of this state. The 10
payment of the principal and interest on bonds issued by a city or 11
village under 1952 PA 175, MCL 247.701 to 247.707, and after that 12
payment, the payment of debt service on loans received under 13
section 11(5), must have priority in the expenditure of money 14
returned under this subsection. 15
(5) Money distributed to each city and village for the 16
maintenance and preservation of its local street system under this 17
act represents the total responsibility of this state for local 18
street system support. Money distributed from the Michigan 19
transportation fund must not be expended for construction purposes 20
on city and village local streets except to the extent matched from 21
local revenues including other money returned to a city or village 22
by this state under the state constitution of 1963 and statutes of 23
this state, from money that can be raised by taxation in cities and 24
villages for street purposes within the limitations of the state 25
constitution of 1963 and statutes of this state, from special 26
assessments, or from any other source. 27
(6) Money returned under this section to a city or village 28
must be expended on the major and local street systems of that city 29
22
JJR H07063'26_HB6115_INTR_1 hn1de3
or village. However, the first priority is the major street system. 1
Money returned for expenditure on the major street system must be 2
expended in the priority order provided in subsection (3) except 3
that surplus money may be transferred for preservation of the local 4
street system. Major street money transferred for use on the local 5
street system must not be used for construction but may be used for 6
preservation. A city or village shall not transfer more than 50% of 7
its annual major street funding for the local street system unless 8
it has adopted and is following an asset management process for its 9
major and local street systems and adopts a resolution with a copy 10
to the department setting forth all of the following: 11
(a) A list of the major streets in that city or village. 12
(b) A statement that the city or village is adequately 13
maintaining its major streets. 14
(c) The dollar amount of the transfer. 15
(d) The local streets to be funded with the transfer. 16
(e) A statement that the city or village is following an asset 17
management process for its major and local street systems. 18
(7) A city or village that has not adopted an asset management 19
plan shall obtain the concurrence of the department to transfer 20
more than 50% of its major street funding to its local street 21
system. The department may provide for pilot projects that would 22
allow a city or village that has adopted an asset management plan 23
under subsection (6) to combine their local and major street funds 24
into 1 street fund and to submit a single report to the department 25
on the expenditure of money on the local and major street systems. 26
(8) Not more than 10% per year of all of the money returned to 27
a city or village from any source for the purposes of this section 28
may be expended for administrative expenses. A city or village that 29
23
JJR H07063'26_HB6115_INTR_1 hn1de3
expends more than 10% for administrative expenses in a year is 1
subject to section 14(5). 2
(9) In each city and village to which money is returned under 3
this section, the responsibility for street preservation and the 4
development, construction, or repair of off-street parking 5
facilities and construction or repair of street lighting shall must 6
be coordinated by a single administrator designated by the 7
governing body who shall be responsible for and shall represent the 8
municipality in transactions with the department under this act. 9
(10) Cities and villages may provide for consolidated street 10
administration. A city or a village may enter into an agreement 11
with other cities or villages, the county road commission, or with 12
the state transportation commission for the performance of street 13
or highway work on a road or street within the limits of the city 14
or village or adjacent to the city or village. The agreement may 15
provide for any of the contracting parties to perform the work 16
contemplated by the contracts including services and acquisition of 17
rights of way, by purchase or condemnation in its own name. The 18
agreement may provide for joint participation in the costs if 19
appropriate. 20
(11) Interest earned on money returned to a city or a village 21
for purposes provided in this section must be credited to the 22
appropriate street fund. 23
(12) In addition to the financial compliance audits required 24
by law, the department may conduct performance audits and make 25
investigations of the disposition of all state money received by 26
cities and villages for transportation purposes to determine 27
compliance with the terms and conditions of this act. Performance 28
audits must be conducted according to government auditing standards 29
24
JJR H07063'26_HB6115_INTR_1 hn1de3
issued by the United States General Accounting Office. The 1
department shall develop all performance audit procedures and 2
reporting requirements sufficient to determine whether money 3
expended under this section was expended in compliance with this 4
act. by September 1, 2012 and shall report to the transportation 5
committees of the senate and house of representatives no later than 6
October 1, 2012 on the additional audit procedures and reporting 7
requirements. The audit procedures must include a review of the 8
road fund balance of the city or village. The cities and villages 9
shall report their road fund balances by fund balance component. 10
The department shall assist cities and villages to ensure that road 11
fund balances are consistently classified and are in compliance 12
with the audit and reporting requirements of this section. The 13
department shall provide notice to cities and villages of the 14
standards to be used for audits under this subsection prior to the 15
fiscal year in which the audit is conducted. The department shall 16
notify cities and villages of any subsequent changes to the 17
standards. Cities and villages shall make available to the 18
department the pertinent records for the audit. Performance audits 19
may be performed at the discretion of the department or on 20
receiving a request from the speaker of the house of 21
representatives or the senate majority leader. 22
(13) Of the amounts appropriated for a city or village major 23
or local street system under this section, where possible, a city 24
or village shall secure pavement warranties for full replacement or 25
appropriate repair for contracted construction work on pavement 26
projects whose cost exceeds $2,000,000.00 and projects for new 27
construction or reconstruction undertaken after April 1, 2016 if 28
allowed by the Federal Highway Administration and the department. A 29
25
JJR H07063'26_HB6115_INTR_1 hn1de3
city or village shall submit a proposed warranty program to the 1
department for approval no later than February 1, 2017. If a 2
proposed warranty program submitted under this subsection is 3
approved by the department, the city or village shall implement the 4
program no later than 1 year after the approval. A city or village 5
shall include a list of all warranties that were secured under this 6
subsection and indicate whether any of those warranties were 7
redeemed with the report required under section 14(3), and shall 8
also list all pavement projects whose cost exceeds $2,000,000.00 9
for which a warranty was not secured. The list shall must include, 10
but is not limited to, all of the following information: 11
(a) The type of project. 12
(b) The cost or estimated cost of the project. 13
(c) The expected lifespan of the project. 14
(d) Whether or not the project met or is currently meeting its 15
expected lifespan. 16
(e) If the project failed to meet or is not meeting its 17
expected lifespan, the cause of the failure and the cost to replace 18
or repair the project. 19
(f) The entity responsible for paying the cost of replacing or 20
repairing the project. 21
(14) With the approval of the director of the department, a 22
city may use up to 20% of the amount received by that city under 23
this section for public transit purposes if more than 10,000,000 24
passengers used public transit within that city during the previous 25
fiscal year. 26
(15) A city or village may use a portion of the amount 27
returned to the city or village under this section for the payment 28
of debt service on bonds, notes, or other obligations. 29
26
JJR H07063'26_HB6115_INTR_1 hn1de3
(16) Once the asset management plan for a city or village as 1
described in section 9a has been approved, amounts distributed to a 2
city or village under this section shall must be expended toward 3
attainment of the condition goals in the asset management plan and 4
as otherwise required by this act. 5
(17) If a city or village has any part of an international 6
airport in its borders, and that international airport has more 7
than 2,000,000 enplaned passengers in the most recently completed 8
calendar year for which Federal Aviation Administration information 9
is available, all of the following apply: 10
(a) The city's or village's population must be multiplied by 3 11
for the purposes of calculating the population under subsection 12
(3). 13
(b) Any funding increase as a result of subdivision (a) must 14
be used for transportation infrastructure purposes, including road 15
construction, reconstruction, resurfacing, maintenance, traffic 16
signal improvements, safety improvements, and drainage on local 17
roads bearing airport-related traffic. 18
(c) Each city or village that receives increased funding under 19
subdivision (a) must submit a report for each year the city or 20
village received increased funding to the department and the 21
legislature detailing how the increased funding was expended, the 22
road condition ratings on primary airport access routes, and 23
estimated traffic volume on primary airport access routes. 24
(18) By not later than February 1 of each year, the department 25
shall certify to the state transportation commission and the 26
legislature which cities or villages qualify for the population 27
multiplier under subsection (17). 28
(19) (17) As used in this section: 29
27
JJR H07063'26_HB6115_INTR_1 hn1de3
(a) "Administrative expenses" means expenses that are not 1
assigned under this section, including, but not limited to, 2
specific road construction or maintenance projects, and are often 3
referred to as general or supportive services. Administrative 4
expenses do not include net equipment expense, net capital outlay, 5
debt service principal and interest, or payments to other state or 6
local offices that are assigned, but not limited to, specific road 7
construction projects or maintenance activities. 8
(b) "Equivalent major mileage" means the sum of 2 times the 9
state trunk line mileage certified by the department as of March 31 10
of each year, as being within the boundaries of each city and 11
village having a population of 25,000 or more, plus the major 12
street mileage in each city and village, multiplied by the 13
following factor: 14
(i) 1.0 for cities and villages of 2,000 or less population. 15
(ii) 1.1 for cities and villages from 2,001 to 10,000 16
population. 17
(iii) 1.2 for cities and villages from 10,001 to 20,000 18
population. 19
(iv) 1.3 for cities and villages from 20,001 to 30,000 20
population. 21
(v) 1.4 for cities and villages from 30,001 to 40,000 22
population. 23
(vi) 1.5 for cities and villages from 40,001 to 50,000 24
population. 25
(vii) 1.6 for cities and villages from 50,001 to 65,000 26
population. 27
(viii) 1.7 for cities and villages from 65,001 to 80,000 28
population. 29
28
Final Page
JJR H07063'26_HB6115_INTR_1 hn1de3
(ix) 1.8 for cities and villages from 80,001 to 95,000 1
population. 2
(x) 1.9 for cities and villages from 95,001 to 160,000 3
population. 4
(xi) 2.0 for cities and villages from 160,001 to 320,000 5
population. 6
(xii) For cities over 320,000 population, a factor of 2.1 7
increased successively by 0.1 for each 160,000 population increment 8
over 320,000. 9
(c) "Population" means the population according to the most 10
recent statewide federal census as certified at the beginning of 11
the state fiscal year, except that, if a municipality has been 12
newly incorporated since completion of the census, the population 13
of the municipality for purposes of the distribution of money 14
before completion of the next census is the population as 15
determined by special federal census, if there is a special federal 16
census, and if not, by the population as determined by the official 17
census in connection with the incorporation, if there is such a 18
census and, if not, by a special state census to be taken at the 19
expense of the municipality by the secretary of state under section 20
6 of the home rule city act, 1909 PA 279, MCL 117.6. 21