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Bill > HB4950
MI HB4950
MI HB4950Transportation: funds; distribution of funds; modify. Amends secs. 5a, 10, 11, 11h, 12, 13, 14, 15 & 20a of 1951 PA 51 (MCL 247.655a et seq.) & repeals sec. 12b of 1951 PA 51 (MCL 247.662b).
summary
Introduced
09/16/2025
09/16/2025
In Committee
09/16/2025
09/16/2025
Crossed Over
Passed
Dead
Introduced Session
103rd Legislature
Bill Summary
A bill to amend 1951 PA 51, entitled"An act to provide for the classification of all public roads, streets, and highways in this state, and for the revision of that classification and for additions to and deletions from each classification; to set up and establish the Michigan transportation fund; to provide for the deposits in the Michigan transportation fund of specific taxes on motor vehicles and motor vehicle fuels; to provide for the allocation of funds from the Michigan transportation fund and the use and administration of the fund for transportation purposes; to promote safe and efficient travel for motor vehicle drivers, bicyclists, pedestrians, and other legal users of roads, streets, and highways; to set up and establish the truck safety fund; to provide for the allocation of funds from the truck safety fund and administration of the fund for truck safety purposes; to set up and establish the Michigan truck safety commission; to establish certain standards for road contracts for certain businesses; to provide for the continuing review of transportation needs within the state; to authorize the state transportation commission, counties, cities, and villages to borrow money, issue bonds, and make pledges of funds for transportation purposes; to authorize counties to advance funds for the payment of deficiencies necessary for the payment of bonds issued under this act; to provide for the limitations, payment, retirement, and security of the bonds and pledges; to provide for appropriations and tax levies by counties and townships for county roads; to authorize contributions by townships for county roads; to provide for the establishment and administration of the state trunk line fund, local bridge fund, comprehensive transportation fund, and certain other funds; to provide for the deposits in the state trunk line fund, critical bridge fund, comprehensive transportation fund, and certain other funds of money raised by specific taxes and fees; to provide for definitions of public transportation functions and criteria; to define the purposes for which Michigan transportation funds may be allocated; to provide for Michigan transportation fund grants; to provide for review and approval of transportation programs; to provide for submission of annual legislative requests and reports; to provide for the establishment and functions of certain advisory entities; to provide for conditions for grants; to provide for the issuance of bonds and notes for transportation purposes; to provide for the powers and duties of certain state and local agencies and officials; to provide for the making of loans for transportation purposes by the state transportation department and for the receipt and repayment by local units and agencies of those loans from certain specified sources; to investigate and study the tolling of roads, streets, highways, or bridges; and to repeal acts and parts of acts,"by amending sections 5a, 10, 11, 11h, 12, 13, 14, 15, and 20a (MCL 247.655a, 247.660, 247.661, 247.661h, 247.662, 247.663, 247.664, 247.665, and 247.670a), section 5a as added by 1981 PA 184, section 10 as amended by 2022 PA 50, section 11 as amended by 2015 PA 175, sections 11h, 14, and 15 as amended by 2020 PA 152, section 12 as amended by 2023 PA 248, section 13 as amended by 2020 PA 153, and section 20a as amended by 2012 PA 298; and to repeal acts and parts of acts.
AI Summary
This bill modifies the distribution of transportation funds and repeals a section of existing law, covering fiscal year 2024 and beyond.
* **Michigan Transportation Fund:** This fund, which receives specific taxes on motor vehicles and fuels, is the primary source of funding.
* Up to $3 million annually is allocated to the state trunk line fund for the rail grade crossing account.
* Up to $3 million annually is allocated to the state trunk line fund for the grade crossing surface account.
* Up to $3 million annually is allocated to the local bridge fund for debt service on notes or bonds.
* $2 million annually is allocated to the local agency wetland mitigation board fund.
* $5 million annually is allocated to the movable bridge fund, with the remainder of certain fuel tax revenue distributed to the state trunk line fund (39.1%), county road commissions (30.45%), and cities and villages (30.45%).
* A portion of fuel tax revenue is allocated to the state trunk line fund for state bridge repair and to the local bridge fund for distribution to cities, villages, and county road commissions.
* $50 million is allocated to the state trunk line fund for debt service costs on state projects.
* 10% is allocated to the comprehensive transportation fund.
* $5 million is allocated to the local bridge fund for distribution to the local bridge advisory board, regional bridge councils, cities, villages, and county road commissions.
* $36.775 million is allocated to the state trunk line fund for the transportation economic development fund, with an additional $3.5 million for economic development road projects.
* At least $33 million annually is allocated to the local program fund.
* The balance of the Michigan transportation fund, after other allocations, is distributed: 39.1% to the state trunk line fund, 30.45% to county road commissions, and 30.45% to cities and villages.
* Federal funds are allocated to the transportation economic development fund for rural and urban projects.
* **State Trunk Line Fund:** This fund receives a significant portion of the Michigan Transportation Fund and is used for state highway and bridge preservation, construction, and debt service. It also receives funds for rail grade crossing improvements and grade crossing surface improvements. An amount equal to 0.0025% of the Michigan Transportation Fund is dedicated to the maintenance and construction of state trunk line highway rest areas.
* **Local Bridge Fund:** This fund provides financial assistance for the preservation, improvement, or reconstruction of existing bridges or the construction of new bridges. It is managed by a local bridge advisory board and regional bridge councils.
* **Local Agency Wetland Mitigation Board Fund:** This fund supports a program to provide funds to local road agencies for wetland mitigation site development, land purchase, construction, monitoring, and easement acquisition.
* **County Road Commissions:** These entities receive funds for the preservation, construction, acquisition, and extension of county primary and local road systems. The distribution formula for these funds is updated to include factors like commercial truck traffic, lane miles, regional climate, construction costs, and subbase geology.
* **Cities and Villages:** These entities receive funds for the preservation, construction, acquisition, and extension of their major and local street systems. The distribution formula is also updated with similar factors as for county road commissions.
* **Seasonal County Roads:** The bill allows county road commissions to establish systems of seasonal roads that are not open to public travel during certain months, with specific notice and hearing requirements.
* **Repeal:** Section 12b of 1951 PA 51, concerning urban area road distribution, is repealed.
Committee Categories
Transportation and Infrastructure
Sponsors (1)
Last Action
Bill Electronically Reproduced 09/16/2025 (on 09/17/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4950 | 09/16/2025 |
| BillText | https://legislature.mi.gov/documents/2025-2026/billintroduced/House/htm/2025-HIB-4950.htm | 09/16/2025 |
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