SENATE SUBSTITUTE FOR

HB-5167, As Passed Senate, June 11, 2014

HOUSE BILL NO. 5167

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; and to repeal acts and

parts of acts,"

by amending section 11c (MCL 247.661c), as amended by 2002 PA 498.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 11c. (1) All ~~federal aid~~ construction projects ~~, all~~

~~other projects~~ of the department concerning highways, streets,

roads, and bridges, whose cost exceeds $100,000.00 for construction

or preservation as defined in section 10c, shall be performed by

contract awarded by competitive bidding unless the department ~~shall~~

~~affirmatively find~~ affirmatively finds that under the circumstances

relating to those projects, some other method is in the public

interest. ~~All of those~~ The director of the department shall report

his or her findings ~~shall be reported~~ to the state transportation

commission 90 days before work is commenced and promptly in writing

to the appropriations committees of the senate and house of

representatives. However, in a case in which the department

determines emergency action is required, the reports need not be

filed before ~~work is commenced~~ a contract is awarded but shall be

promptly filed. ~~Local road agencies that make a decision not to~~

House Bill No. 5167 as amended June 11, 2014

~~perform construction or preservation projects exceeding $100,000.00~~

~~shall contract for this work through competitive bidding.~~

(2) All construction projects of a local road agency whose

costs exceed $100,000.00 for construction or preservation,

excluding << >> maintenance, shall be performed by contract

awarded by competitive bidding unless the local road agency

affirmatively finds that under the circumstances relating to those

projects, some other method is in the public interest. Installation

or upgrading of advanced traffic management and signals is exempt

from this subsection. A county road commission shall report its

findings before work is commenced in writing to the county board of

commissioners of that county and the state transportation

commission. A city or village shall report its findings before work

is commenced in writing to the governing elected body of that city

or village and the state transportation commission.

(3) The department shall develop and implement a performance-

based maintenance system to improve efficiencies and outcomes in

the performance of maintenance services on state trunk line

highways.

(4) No later than September 30, 2015, the department shall

develop and implement a performance rating system for the

maintenance services performed on all highways, streets, and roads

under its jurisdiction. The performance rating system shall provide

for the collection of data on all maintenance activities, including

the quantities and locations of activities performed and the costs

associated with those activities.

(5) Beginning October 1, 2015, a minimum of 20% of all funds

expended by the department for maintenance services shall be for

contracts that provide for payment based on performance outputs or

outcomes associated with the performance rating system required

under subsection (4).

(6) The director of the department shall report results and

findings on the outcomes of state trunk line highway maintenance

services, the contracting process, and contract performance for all

contracts entered into under this section no later than December 1,

2016, and on December 1 of each subsequent year to the

appropriations committees of the senate and house of

representatives.

(7) A local road agency that received at least $20,000,000.00

in funding from the Michigan transportation fund in fiscal year

2013 shall develop, in conjunction with the transportation asset

management council and the department, and implement a performance-

based preventative maintenance system to improve efficiencies and

outcomes in the performance of preventative maintenance services on

all highways, streets, and roads under its jurisdiction.

(8) No later than September 30, 2016, a local road agency

described in subsection (7) shall develop and implement a

performance rating system for the preventative maintenance services

performed on all highways, streets, and roads under its

jurisdiction. The performance rating system shall provide for the

collection of data on all preventative maintenance activities,

including the quantities and locations of activities performed and

the costs associated with those activities.

(9) Beginning October 1, 2016, a minimum of 20% of all funds

expended by a local road agency described in subsection (7) for

preventative maintenance services shall be for contracts that

provide for payment based on performance outputs or outcomes

associated with the performance rating system required under

subsection (8).

(10) The chief executive of each local road agency required to

competitively bid under this section shall report results and

findings on the outcomes of preventative maintenance services

performed on all highways, streets, and roads under the

jurisdiction of that local road agency, the contracting process,

and contract performance for all contracts entered into under this

section no later than December 1, 2017, and on December 1 of each

subsequent year to the director of the department and to the

appropriations committees of the senate and house of

representatives.

(11) As used in this section:

(a) "Local road agency" means that term as defined in section

9a.

(b) "Maintenance services" means routine and reactive

maintenance activities undertaken to ensure the normal and safe

operation of a highway, street, or road, including activities

performed on an appurtenance or roadside feature associated with a

highway, street, or road that is necessary for the safe operation

of the appurtenance or roadside feature. Maintenance services do

not include a construction activity that is intended to

significantly repair, resurface, rehabilitate, or reconstruct a

highway, street, or road, or an appurtenance or roadside feature