Michigan House Bill HB4074

Michigan 2023-2024 Regular Session

• Introduced: 2/7/23
• Refer: 2/7/23

Caption

Vehicles: registration; revenue from vehicle registration fees; allocate to county where registrant resides and distribute per lane mile to local road agency. Amends sec. 810 of 1949 PA 300 (MCL 257.810).

Impact

If passed, this legislation is intended to improve the infrastructure funding process by fostering a fairer distribution method aimed at supporting local road agencies. It would empower local road agencies with an appropriate amount of funding that reflects the usage and maintenance needs of highways, roads, and streets within their jurisdiction. The defined methodology of calculating lane miles—based on the number of pavement lanes—adds clarity to how funds are allocated and could potentially enhance accountability and efficiency in transportation funding across Michigan.

Summary

House Bill 4074 is a legislative proposal aimed at amending the Michigan Vehicle Code, specifically section 810. The bill seeks to change the allocation of revenue collected from vehicle registration fees, ensuring that these funds are distributed more evenly among counties based on vehicle registrations. The bill stipulates that all fees and collected money should be deposited into the state treasury and subsequently credited to the Michigan transportation fund. From there, the secretary of state is responsible for returning the funds to each county in proportion to the number of vehicles registered, along with a specific distribution of funds to local road agencies within those counties.

Contention

Although the intent of HB 4074 is to create a transparent and equitable funding mechanism for local roads, there may be some contention regarding how these allocations could impact less populated counties versus densely populated areas. Some stakeholders may argue that supporting larger counties with more registered vehicles could lead to a disparity in road maintenance funding for smaller counties, which might not generate equivalent revenue despite having substantial road maintenance needs. This aspect of the bill could necessitate further discussions and amendments to ensure that it meets the diverse needs of Michigan's various regions.