Senate Bill 37 Summary

• Modifies the distribution formula for Michigan transportation funds returned to county road commissions by changing references from "total mileage" to "annual vehicle miles traveled as determined by the federal highway administration" in subsections (6)(b) and (7)(a).

• Requires county road commissions and the Michigan County Road Association to jointly develop incentives for counties to establish statewide purchasing pools for more efficient use of transportation funds.

• Mandates that at least 90% of state revenue returned to county road commissions must be expended annually on preservation of highways, roads, streets, and bridges, with specific exceptions for bonds, administrative costs, and other designated purposes.

• Establishes performance audit requirements for the Department of Treasury to monitor county compliance with fund distribution terms and conditions, with 6 months advance notice required before audits.

• Limits administrative expenses to not more than 10% per year of all funds received by counties, subject to waiver by the Department of Treasury.