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JJR H04885'25_HB6129_INTR_1 0bgq8r
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
June 24, 2026, Introduced by Rep. Bollin and referred to Committee on Appropriations.
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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 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 1
appropriated for each fiscal year in the following order of 2
priority. 3
(2) The first priority is to pay, but only from money 4
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restricted as to use by section 9 of article IX of the state 1
constitution of 1963, the principal and interest on bonds or notes 2
issued under section 18b for comprehensive transportation purposes 3
as defined by law. A sufficient portion of the comprehensive 4
transportation fund is irrevocably appropriated to pay, when due, 5
the principal and interest on those bonds and notes. 6
(3) After making or setting aside payments required by 7
subsection (2), the second priority of the comprehensive 8
transportation fund is the payment of the department's cost in 9
administering the comprehensive transportation fund. The amount to 10
be expended pursuant to this subsection shall must not exceed the 11
costs appropriated for the administration of the fund in the fiscal 12
year ending September 30, 1987, as adjusted annually on October 1, 13
by the change for the preceding 12 months in the Detroit consumer 14
price index Consumer Price Index for urban wage earners and shall 15
be appropriated annually by the legislature. 16
(4) After making or setting aside payments required by 17
subsections (2) and (3), the balance of the comprehensive 18
transportation fund shall must be expended each fiscal year as 19
appropriated annually by the legislature pursuant to the state 20
transportation program approved by the commission as follows: 21
(a) The third priority shall be is the payment of operating 22
grants to eligible authorities and eligible governmental agencies 23
according to the following formulations and subject to the 24
following requirements: 25
(i) For the fiscal year ending September 30, 1998, and for each 26
fiscal year, thereafter, each eligible authority and eligible 27
governmental agency that provides public transportation services in 28
urbanized areas under 49 USC 5307, with a Michigan population 29
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greater than 100,000 shall 200,000 must receive a grant of up to 1
50% of their eligible operating expenses as defined by the 2
department. 3
(ii) For the fiscal year ending September 30, 1998, and each 4
fiscal year, thereafter, each eligible authority and eligible 5
governmental agency that provides public transportation services in 6
urbanized areas with a Michigan population less than or equal to 7
100,000 200,000 and nonurbanized areas under 49 USC 5311, shall 8
must receive a grant of up to 60% of their eligible operating 9
expenses as defined by the department. For purposes of receiving a 10
grant under this subparagraph in nonurbanized areas, eligible costs 11
of services provided by water vehicle shall must be reimbursed at 12
not less than 50% of the portion of the costs not eligible for 13
reimbursement by the federal government. 14
(iii) Funds shall must not be distributed to an eligible 15
authority or eligible governmental agency under this act unless the 16
eligible authority or eligible governmental agency provides or 17
agrees to provide preferential fares for public transportation 18
services to persons 65 years of age or over or persons with 19
disabilities riding in off peak periods of service. As used in this 20
section, "person with disabilities" means an individual with a 21
disability as that term is defined in 61 FR 56424 (November 1, 22
1996) and 49 CFR part 27. The preferential fares shall must not be 23
higher than 50% of the regular 1-way single fare. 24
(iv) Eligible authorities and eligible governmental agencies 25
shall not engage in charter service using vehicles, facilities, or 26
equipment funded under this act except on an incidental basis as 27
defined by 49 CFR part 604. 28
(v) Notwithstanding any other provision of this subsection, 29
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for the fiscal year ending September 30, 1998, each eligible 1
authority and eligible governmental agency shall receive a 2
distribution from the comprehensive transportation fund not less 3
than the distribution received for eligible operating expenses for 4
the fiscal year ending September 30, 1997. Beginning with the 5
fiscal year ending September 30, 1998 and each fiscal year 6
thereafter, For each fiscal year, each eligible authority and 7
eligible governmental agency shall receive a distribution from the 8
comprehensive transportation fund for eligible operating expenses 9
not less than the distribution received for the fiscal year ending 10
September 30, 1997. As it relates to this subsection the ratio 11
between comprehensive transportation funds and local funds in the 12
fiscal year ending September 30, 1989 shall must be maintained for 13
all fiscal years by the eligible authority and eligible 14
governmental agency. Reductions in this ratio shall must require a 15
proportionate reduction in the comprehensive transportation funds 16
provided for any fiscal year. 17
(vi) Each eligible authority and eligible governmental agency 18
receiving comprehensive transportation funds shall prepare and 19
submit to the department a quarterly report of the progress made in 20
carrying out its local transportation program within not more than 21
40 days after the end of each fiscal year quarter. The progress 22
report shall must be made on forms authorized by the United States 23
department Department of transportation Transportation under the 24
provisions of the surface transportation and uniform relocation 25
assistance act of 1987, Public Law 100-17, 101 Stat. Stat 132. 26
(vii) The department shall periodically adjust or redistribute 27
comprehensive transportation funds previously distributed under 28
this subdivision. 29
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(b) For the each fiscal year, ending September 30, 1997, and 1
each fiscal year thereafter, not less than 10% shall be distributed 2
by the department for intercity passenger and intercity freight 3
transportation purposes. 4
(c) For the each fiscal year, ending September 30, 1997, and 5
each fiscal year thereafter, funds remaining in the fund after 6
payment of the amounts required by subdivisions (a) and (b) shall 7
be distributed by the department for public transportation 8
purposes. For the each fiscal year, ending September 30, 1998, and 9
each fiscal year thereafter, funds shall must be made available to 10
match all projects for eligible authorities and eligible 11
governmental agencies that are approved for federal funding as 12
provided by federal law and for which an approved transportation 13
improvement program (TIP) and state transportation improvement plan 14
(STIP) exist. Funds distributed under this subdivision shall must 15
be expended pursuant to specific line item appropriation for, but 16
are not limited to, the following public transportation purposes: 17
(i) The specialized services assistance program. The 18
specialized services assistance program shall must be funded with 19
not less than $3,600,100.00 from funds distributed under this 20
subdivision. Funds shall must be distributed according to 21
guidelines developed by the department based upon on the following 22
considerations: 23
(A) Proposals for coordinated specialized services assistance 24
funding shall must be developed jointly between existing eligible 25
authorities or eligible governmental agencies that provide public 26
transportation services and the area agencies on aging or any other 27
organization representing specialized services interests, as 28
defined in this subdivision. Plans shall must be reviewed and 29
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approved by the bureau of urban and public transportation of the 1
department. Upon On approval, the department shall release the 2
funds to the eligible authority or eligible governmental agency 3
which shall then allocate the funds to the area agency on aging or 4
any other organization representing specialized services interests, 5
as defined in this subdivision for the purchase of services as 6
approved in the plan by the department. 7
(B) If an eligible authority or eligible governmental agency 8
does not exist to provide public transportation service in a 9
county, coordinated proposals for specialized services assistance 10
funding may be submitted by the area agency on aging or any other 11
organization representing specialized services interests, as 12
defined in this subdivision. The proposals shall must be reviewed 13
and approved by the bureau of urban and public transportation of 14
the department. Upon On approval, the department shall release the 15
funds to the area agency on aging or any other organization 16
representing specialized services interests, as defined in this 17
subdivision for the purchase of services as approved in the plan by 18
the department. 19
(C) For the purposes of this program, "specialized services" 20
means public transportation primarily designed for persons with 21
disabilities or persons who are 65 years of age or older. 22
(ii) Local bus capital. For the fiscal year ending September 23
30, 1998 and each fiscal year, thereafter, not less than 24
$8,000,000.00 will must be distributed for either matching federal 25
funds for local bus capital or 100% capital projects for eligible 26
authorities and eligible governmental agencies that are not 27
eligible to receive federal capital formula funds under section 28
5307 of the federal intermodal surface transportation efficiency 29
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act of 1991, Public Law 102-240, or any successor act. 1
(iii) Local bus new services. 2
(iv) Not less than $2,000,000.00 in each fiscal year for the 3
credit program established under section 10l. 4
(v) Public transportation development. 5
(vi) Other public transportation programs approved by the 6
commission. 7
(d) The unappropriated and unencumbered balance of the 8
comprehensive transportation fund lapses at the end of each fiscal 9
year and reverts to the comprehensive transportation fund for 10
appropriation in the following fiscal year. 11
(5) Eligible authorities and eligible governmental agencies 12
shall must receive capital grants each fiscal year by the annual 13
process described in this section. Amounts received by an eligible 14
authority or eligible governmental agency pursuant to this 15
subsection shall must be expended by that authority or agency 16
solely for capital projects that have been approved by the state 17
transportation commission. Any funds approved by distribution to an 18
eligible authority or eligible governmental agency pursuant to this 19
section that have not been encumbered by that agency or authority 20
for an approved capital project by the end of the following fiscal 21
year in which the funds were approved shall must not be expended by 22
the authority or agency and be are available for distribution from 23
the comprehensive transportation fund for the purposes described in 24
this section. 25
(6) The department, in carrying out the policy of the state 26
transportation commission, shall annually prepare and distribute by 27
December 1, instructions to eligible governmental agencies, 28
eligible authorities, and intercity carriers to enable the 29
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preparation of a local transportation program. Eligible 1
governmental agencies, eligible authorities, and intercity carriers 2
shall give public notice of their intent to apply for money in the 3
comprehensive transportation fund to the residents of the counties, 4
townships, villages, and cities affected by the local 5
transportation program and shall make their application available 6
for a period of 30 days. All comments received by the eligible 7
governmental agency, eligible authority, or intercity carrier shall 8
must be transmitted to the department. 9
(7) On or before March 1 of each year, each intercity carrier, 10
eligible authority, and eligible governmental agency shall submit 11
to the department its local transportation program for the next 12
succeeding fiscal year. The format for each local transportation 13
program shall must be as prescribed by the federal transportation 14
improvement program insofar as Transportation Improvement Program 15
to the extent that it is practical and shall must include project 16
descriptions, funding sources, and justification for each line 17
item, and summary budgets based on distributions anticipated under 18
subsection (4). The program shall must contain at a minimum the 19
contemplated routes, hours of service, estimated transit vehicle 20
miles, costs of public transportation services, and projected 21
capital improvements or projects as exclusively determined by the 22
eligible authority or eligible governmental agency. The costs of 23
service and capital improvements or projects shall must be in 24
sufficient detail to permit the department to evaluate and approve 25
the annual public transportation program. Determination of 26
individual projects to be included in the local transportation 27
programs other than those provided in this subsection shall must be 28
made by the governing body of the eligible authority or eligible 29
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governmental agency. 1
(8) On or before March 1 of each year, the department shall 2
prepare and file for public inspection and review the department 3
transportation program. The department transportation program shall 4
must be prepared on similar format to the local transportation 5
programs, and shall must include a summary description of projects, 6
with funding sources and project justifications for each line item 7
for the fiscal year immediately succeeding the fiscal year in which 8
the program is submitted. In addition, the department 9
transportation program shall must include summary, nondetailed 10
budget and project descriptions and justifications excluding 11
projects contained in a local transportation program. 12
(9) On or before April 1 of each year, the department shall 13
must prepare and file with the commission the proposed state 14
transportation program for the next succeeding fiscal year. The 15
proposed state transportation program shall must contain the local 16
transportation programs of each intercity carrier, eligible 17
authority and eligible governmental agency, the department 18
transportation program, and the programs for the expenditure of the 19
state trunk line fund as they may have been supplemented, amended, 20
or modified since their original filing. The state transportation 21
program shall must include the estimated amount of money in the 22
funds described in this subsection by revenue source, project 23
justifications, project descriptions funding sources, and budget 24
summaries. 25
(10) On or before May 1 of each year, the state transportation 26
commission shall act on the state transportation program for the 27
fiscal year commencing on the following October 1. In considering 28
approval of the proposed projects of each intercity carrier, 29
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eligible authority, or eligible governmental agency, other than 1
projects that are to be funded pursuant to under subsection (5), 2
the state transportation commission shall consider whether the 3
projects comply with state law, are within funds allocated in this 4
section, whether they may be funded within the approved budgets, 5
whether there are intercity carriers, eligible authorities, and 6
eligible governmental agencies responsible to implement the 7
projects, and the recommendations of the department on individual 8
projects. Upon On making those determinations, the state 9
transportation commission shall approve the projects which best 10
meet the criteria of this subsection. 11
(11) By October 1, the department and each intercity carrier, 12
eligible authority, or eligible governmental agency shall enter 13
into a contractual agreement or standardized grant memorandum of 14
agreement, which may cover 1 or more projects to be made from this 15
section in the applicable fiscal year to the intercity carrier, 16
eligible authority, or eligible governmental agency from the 17
comprehensive transportation fund. 18
(12) After a multiyear public transportation program is 19
approved by the state transportation commission, the department may 20
enter into a grant-in-aid instrument with an eligible authority, 21
intercity carrier, or eligible governmental agency obligating the 22
state to a minimum level of funding for approved projects to be 23
available over the multiyear period of the program. This obligation 24
shall be is binding upon on the department as long as the 25
provisions and conditions of the state transportation commission 26
approved program are carried out as agreed. 27
(13) Contracts and grant memorandum agreements may be audited 28
by the state transportation commission's office of commission 29
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audits using rules promulgated by the United States general 1
accounting office General Accounting Office and the terms and 2
conditions of the respective contracts and agreements. Third party 3
Third-party agreements are subject to the review and approval of 4
the department. 5
(14) Funds distributed by the department may pay 100% of the 6
portion of the cost not eligible for reimbursement by the federal 7
government for eligible capital projects authorized by the state 8
transportation commission using comprehensive transportation funds 9
or the proceeds of notes and bonds issued under section 18b. 10
Priority for funding obligation shall must be given to capital 11
projects for which federal funds have been authorized. 12
(15) All approved local bus new services initiated by eligible 13
authorities and eligible governmental agencies not in their fourth 14
year or beyond of funding on October 1, 1988, shall must be funded 15
from subsection (4)(c)(iii). Local bus new services shall must be 16
funded under subsection (4)(c)(iii) in the following percentages of 17
eligible operating expenses as determined by the department: 18
(a) Startup 100%. 19
(b) First year 90%. 20
(c) Second year 80%. 21
(d) Third year 70%. 22
(e) Fourth year and each year thereafter, as determined by and 23
from funds provided under subsection (4)(a). The balance of 24
eligible operating expenses shall must be met from local revenue 25
sources including farebox. The department shall pay up to 100% of 26
eligible capital expenses during the startup and first 3 years of 27
service, after the third year, the department shall participate in 28
eligible capital expenses in the same percentage as for other 29
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eligible authorities and eligible governmental agencies. For the 1
purposes of this subsection, eligible operating and capital 2
expenses means those expenses determined by the department as 3
applicable to existing eligible authorities and eligible 4
governmental agencies. The department shall prioritize annually all 5
requests for comprehensive transportation funds to institute new 6
services under this subsection. First priority shall must be given 7
to eligible authorities and eligible governmental agencies who have 8
not completed their first 3 years of service by October 1, 1998. 9
New services initiated by eligible authorities and eligible 10
governmental agencies under this subsection shall must meet all of 11
the requirements of section 10. 12
(16) The department shall pay up to 80% of the portion of the 13
cost not eligible for reimbursement by the federal government for 14
intercity passenger operating assistance projects authorized by the 15
commission for the first 2 years of new services. For the third 16
year, eligible costs shall must be reimbursed at up to 60% of the 17
portion of the cost not eligible for reimbursement by the federal 18
government. After the third year, eligible costs shall must be 19
reimbursed at up to 50% of the portion of the cost not eligible for 20
reimbursement by the federal government. Eligible costs of services 21
provided as of September 30, 1981, shall must be reimbursed at up 22
to 50% of the portion of the cost not eligible for reimbursement by 23
the federal government. However, the amount of funds from the 24
comprehensive transportation fund when added to federal funds and 25
local funds shall must not exceed the total operating assistance 26
project cost. 27
(17) A vehicle purchased, leased, or rented after November 15, 28
1976, by an eligible authority or eligible governmental agency with 29
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funds made available under this act and not already committed under 1
a contract in existence on November 15, 1976, shall must not be 2
used to provide service on a fixed schedule and fixed route for 3
which a passenger fee is charged unless the vehicle is accessible 4
to a person using a wheelchair from a roadway level or curb level, 5
and has accommodations in which 1 or more wheelchairs can be 6
secured. 7
(18) A vehicle used to provide demand actuated service shall 8
must not be purchased, leased, or rented by an eligible authority 9
or eligible governmental agency after October 1, 1978, with funds 10
made available under this act unless the eligible authority or 11
eligible governmental agency has submitted a plan to the department 12
describing the service to be provided by the demand actuated 13
service to persons 65 years of age or older and persons with 14
disabilities within the applicable service area and that plan has 15
been approved by the department. The department shall approve the 16
plan as submitted or modified or shall reject the plan within not 17
more than 60 days after the plan is submitted. A plan that 18
describes the service to be provided by the demand actuated service 19
shall must not be approved by the department unless that plan 20
provides the following: 21
(a) That demand actuated service will be provided to persons 22
65 years of age or older and persons with disabilities residing in 23
the entire service area subject to the plan. 24
(b) That as a minimum, demand actuated service will be 25
provided to persons 65 years of age or older and persons with 26
disabilities during the same hours as service is provided to all 27
other persons in the service area subject to the plan. 28
(c) That the average time period required for demand actuated 29
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service to persons 65 years of age or older and persons with 1
disabilities from the initiation of a service request to arrival at 2
the destination is equal to the average time period required for 3
demand actuated service provided to all other persons in the 4
service area subject to the plan. 5
(d) That the eligible authority or eligible governmental 6
agency submitting the plan has established a local advisory council 7
with not less than 50% of its membership representing persons 65 8
years of age or older and persons with disabilities within the 9
service area subject to the plan and that the local advisory 10
council has had an opportunity to review and comment upon on the 11
plan before its submission to the department. Each eligible 12
authority or eligible governmental agency jointly with the area 13
agency on aging shall approve at least 1 or the equivalent of 12% 14
of the membership of the local advisory council. Each advisory 15
council comment shall must be included in the plan when submitted 16
to the department. 17
(19) Notwithstanding subsection (18), a plan required by 18
subsection (18) that is not approved or rejected by the department 19
within 60 days after submission shall be is considered approved as 20
submitted. 21
(20) Subsections (17), (18), and (19) shall not apply to 22
vehicles or facilities used to transport persons by rail, air, or 23
water or to vehicles of common carriers licensed by the department. 24
(21) After January 1, 1979, the department shall submit an 25
annual report to the legislature detailing the service provided in 26
the prior year for persons 65 years of age or older and persons 27
with disabilities by fixed route service and demand actuated 28
service. This report shall must include a record of passenger usage 29
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and shall must be submitted by April 1 of each year. 1
(22) Notwithstanding any other provision of this section, for 2
each fiscal year that begins after September 30, 2009, the governor 3
and the state budget director shall must include in the annual 4
budget submitted to the legislature for the ensuing fiscal period 5
under section 18 of article V of the state constitution of 1963 an 6
appropriation from a fund or funds other than the comprehensive 7
transportation fund to a street railway organized under the 8
nonprofit street railway act, 1867 PA 35, MCL 472.1 to 472.27, part 9
5 of the recodified tax increment financing act, 2018 PA 57, MCL 10
125.4503 to 125.4527, of a sum equal to the difference between the 11
annual operating expenses of the street railway and revenue 12
received by the street railway during the same annual period, 13
including, but not limited to, tax increment revenues received by 14
the street railway under section 23 of the nonprofit street railway 15
act, 1867 PA 35, MCL 472.23. section 523 of the recodified tax 16
increment financing act, 2018 PA 57, MCL 125.4523. The 17
appropriation submitted in the budget under this section shall must 18
not exceed 8% of the total private investment in the street railway 19
as determined by the department. A street railway is not an 20
eligible authority or eligible governmental agency for purposes of 21
subdivision subsection (4)(a). 22
(23) For each eligible authority and each eligible 23
governmental agency within a public transit region, a regional 24
transit authority shall apply for, receive, and disburse funds 25
under section 8 of the regional transit authority act, 2012 PA 387, 26
MCL 124.548. 27
(24) As used in this section, "person with disabilities" means 28
an individual with a disability as that term is defined in 61 FR 29
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56424 (November 1, 1996) and 49 CFR part 27. 1
Sec. 13c. (1) The neighborhood roads fund is created in the 2
state treasury as a separate fund. 3
(2) The state treasurer must deposit money and other assets 4
received from any source in the fund. The state treasurer must 5
direct the investment of money in the fund and credit interest and 6
earnings from the investments to the fund. 7
(3) Money in the fund at the close of the fiscal year does not 8
lapse to the general fund. 9
(4) The department is the administrator of the fund for audits 10
of the fund. 11
(5) Beginning with the state fiscal year ending September 30, 12
2026 through the state fiscal year ending September 30, 2030, the 13
money received in the fund each state fiscal year must be 14
distributed as follows: 15
(a) $100,000,000.00 of the money received in the fund each 16
state fiscal year must be deposited and maintained in an account 17
separate from all other money received in the fund. The local 18
bridge advisory board created in section 10(4) must expend money 19
from the account described in this subsection only for the repair 20
of closed, restricted, and critical bridges as determined by the 21
local bridge advisory board as provided in section 10(4) to (13). 22
(b) After the distributions in subdivision (a), $40,000,000.00 23
shall be appropriated to the local grade separation fund for use 24
under section 11i. 25
(c) After the distributions in subdivisions (a) and (b), 26
$100,000,000.00 shall be appropriated as follows: 27
(i) 35% to the comprehensive transportation fund for use under 28
section 10b for eligible authorities and eligible governmental 29
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agencies that provide public transportation services with 5% 1
reserved for agencies in urbanized areas with a Michigan population 2
less than or equal to 100,000 200,000 and nonurbanized areas under 3
49 USC 5311. 4
(ii) 65% to the infrastructure projects authority fund created 5
in subsection (8). 6
(d) After the distributions in subdivisions (a) to (c), 80% of 7
the remainder of the money received in the fund shall be 8
appropriated as follows: 9
(i) 65% to county road commissions, to be allocated in 10
accordance with the provisions governing the distribution and use 11
of Michigan transportation fund revenue returned to counties under 12
section 12. 13
(ii) 35% to city and village road agencies, to be allocated in 14
accordance with the provisions governing the distribution and use 15
of Michigan transportation fund revenue returned to cities and 16
villages under section 13. 17
(e) After the distributions in subdivisions (a) to (c), 20% of 18
the remainder of the money received in the fund shall be 19
appropriated to the state trunk line fund for use under section 11. 20
(6) Beginning with the state fiscal year ending September 30, 21
2031, the money received in the fund each state fiscal year must be 22
distributed as follows: 23
(a) $10,000,000.00 shall be appropriated to the local grade 24
separation fund for use under section 11i. 25
(b) After the distributions in subdivision (a), $70,000,000.00 26
shall be appropriated as follows: 27
(i) 75% to the comprehensive transportation fund for use under 28
section 10b for eligible authorities and eligible governmental 29
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agencies that provide public transportation services with 5% 1
reserved for agencies in urbanized areas with a Michigan population 2
less than or equal to 100,000 200,000 and nonurbanized areas under 3
49 USC 5311. 4
(ii) 25% to the infrastructure projects authority fund created 5
in subsection (8). 6
(c) After the distributions in subdivisions (a) and (b), 7
$100,000,000.00 shall be appropriated as follows: 8
(i) 6.5% to county road commissions, to be allocated in 9
accordance with the provisions governing the distribution and use 10
of Michigan transportation fund revenue returned to counties under 11
section 12. 12
(ii) 3.5% to city and village road agencies, to be allocated in 13
accordance with the provisions governing the distribution and use 14
of Michigan transportation fund revenue returned to cities and 15
villages under section 13. 16
(iii) The remainder shall be appropriated to the state trunk 17
line fund. 18
(d) After the distributions in subdivisions (a) to (c), the 19
remainder of the money received in the fund shall be appropriated 20
as follows: 21
(i) 71.5% shall be appropriated as follows: 22
(A) 65% to county road commissions, to be allocated in 23
accordance with the provisions governing the distribution and use 24
of Michigan transportation fund revenue returned to counties under 25
section 12. 26
(B) 35% to city and village road agencies, to be allocated in 27
accordance with the provisions governing the distribution and use 28
of Michigan transportation fund revenue returned to cities and 29
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JJR H04885'25_HB6129_INTR_1 0bgq8r
villages under section 13. 1
(ii) The remainder shall be appropriated to the state trunk 2
line fund. 3
(7) Matching funds are not required from a local unit of 4
government or county road commission as a condition for expending 5
money distributed under subsection (5) or (6). However, any 6
governmental entity expending money distributed under subsection 7
(5) or (6) may request matching funds from other sources. 8
(8) The infrastructure projects authority fund is created in 9
the state treasury as a separate fund. The department is the 10
administrator of the infrastructure projects authority fund for 11
audits of that fund. All of the following apply to the 12
infrastructure projects authority fund: 13
(a) Money appropriated to the infrastructure projects 14
authority fund and the interest accruing to that fund must be 15
expended by the department only in accordance with subsections (9) 16
and (10). 17
(b) Money remaining in the infrastructure projects authority 18
fund does not lapse to the general fund at the end of the fiscal 19
year. 20
(c) By December 30, 2026, and each calendar year thereafter 21
that the infrastructure projects authority fund receives 22
appropriations, the department shall report to the governor, the 23
state transportation commission, and the legislature on the status 24
of projects funded by the infrastructure projects authority fund. 25
The report must include the status of all of the following 26
activities for the previous state fiscal year: 27
(i) The location of funded projects. 28
(ii) A listing of total money distributed to each region. 29
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JJR H04885'25_HB6129_INTR_1 0bgq8r
(iii) Individual project funding amounts. 1
(iv) Projected individual project benefits. 2
(v) Project selection criteria. 3
(vi) A listing of individual project support. 4
(vii) A running total fund balance. 5
(viii) Any other pertinent fund status details. 6
(9) Of the money deposited into the infrastructure projects 7
authority fund each year, the department may expend up to 20% of 8
the money for payment of supplemental operating grants to eligible 9
authorities and eligible governmental entities, subject to all of 10
the following: 11
(a) Except as provided in this subsection, the department must 12
allocate supplemental operating grants in a manner that conforms 13
to, supplements, and is proportional to the formula for the payment 14
of operating grants to eligible authorities and eligible 15
governmental entities under section 10e(4)(a). 16
(b) The department shall not expend any money under this 17
subsection in a state fiscal year in which the amount appropriated 18
from the comprehensive transportation fund for the payment of 19
operating grants to eligible authorities and eligible governmental 20
entities under section 10e(4)(a) is less than the amount expended 21
under that subdivision in the state fiscal year ending September 22
30, 2026, adjusted by the department each year by an amount equal 23
to the annual percentage increase in the Detroit Consumer Price 24
Index for the preceding calendar year. 25
(c) The department must not award a supplemental operating 26
grant to any eligible authority or eligible governmental entity 27
until the department has received and reviewed financial documents 28
that demonstrate that the eligible authority or government entity 29
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JJR H04885'25_HB6129_INTR_1 0bgq8r
maintains and is in compliance with a balanced budget plan for the 1
current fiscal year. 2
(d) Money granted to an eligible authority or eligible 3
governmental entity under this subsection is supplemental and in 4
addition to any money that the eligible authority or eligible 5
governmental entity may receive under section 10b. 6
(10) After making allocations required under subsection (9) in 7
a state fiscal year, the department may make qualified investments 8
in infrastructure mobility projects consistent with section 10b to 9
eligible authorities and eligible governmental entities from the 10
infrastructure projects authority fund. The department must 11
consider the following criteria to the extent reasonably applicable 12
before entering into a written agreement with an eligible authority 13
or eligible governmental entity for the qualified investment: 14
(a) Whether the qualified investment is for the development, 15
expansion, or enhancement of a high-capacity mobility 16
transportation project. 17
(b) Whether the qualified investment is for the development, 18
expansion, or enhancement of regional or multijurisdictional high-19
capacity mobility transportation that connects major population, 20
employment, educational, health care, or other activity centers. 21
(c) Whether the qualified investment is for the development, 22
expansion, or enhancement of innovative and flexible mobility 23
transportation intended to meet mobility needs in lower density 24
areas, for first- and last-mile transportation solutions, or for 25
other specialized public transportation purposes, including, but 26
not limited to, access to health care. 27
(d) The extent of support for the qualified investment within 28
the region impacted by the qualified investment, including, but not 29
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JJR H04885'25_HB6129_INTR_1 0bgq8r
limited to, support from local government, an eligible authority or 1
eligible governmental entity, and regional anchor institutions such 2
as major regional employers, local and regional economic 3
development organizations, and educational institutions. 4
(e) The degree of financial participation from regional 5
entities impacted by or supporting the qualified investment, 6
including, but not limited to, local units of governments, public 7
transportation providers, and other regional entities, considering 8
the financial capacity of the regional entities. 9
(f) The readiness, financial feasibility, and financial 10
sustainability of the qualified investment, with the qualified 11
investment facilitating a complete capital and operating financial 12
model for the project supported by the qualified investment, with 13
the highest priority for financial assistance provided when the 14
qualified investment is necessary to meet a capital or operating 15
matching requirement for federal funding. 16
(g) Whether the proposed qualified investment will provide 17
locally or regionally significant benefits for the movement of 18
people or goods, provide regional economic growth, and increase the 19
attractiveness of the region for population growth, job growth, or 20
tourism, with priority given to a qualified investment that 21
includes a transit, multimodal, or nonmotorized component. 22
(11) Grants and qualified investments from the infrastructure 23
projects authority fund may be used to match federal aid, grants, 24
or other assistance. 25
(12) As used in this section: 26
(a) "Fund" means the neighborhood roads fund unless otherwise 27
specified. 28
(b) "Multimodal" means the movement of persons by multiple 29
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JJR H04885'25_HB6129_INTR_1 0bgq8r
forms of transportation. 1
(c) "Qualified investment" means a grant, loan, or other 2
economic assistance provided by the department to an eligible 3
authority or eligible governmental entity under this section for a 4
project eligible for assistance under 49 USC 101 to 80504 or 23 USC 5
101 to 611. 6