HB 5007 Summary

• Establishes the Transportation Asset Management Council within the state transportation commission to develop statewide asset management strategies for roads and bridges, beginning with federal-aid eligible highways and expanding to county and municipal systems.

• Requires the department of transportation and all local road agencies (county road commissions, cities, and villages) to annually submit multiyear programs and reports on road conditions, maintenance activities, and fund expenditures to the council.

• Authorizes the department to conduct performance audits of county road commissions and municipalities receiving state transportation funds to ensure compliance with spending requirements and reporting standards, with audit procedures to be developed by September 1, 2012.

• Defines key transportation terms including "preservation," "maintenance," "preventive maintenance," and "asset management" to clarify eligible uses of Michigan transportation funds for road and bridge work.

• Requires counties and municipalities to maintain detailed records and fund balance reporting; limits administrative expenses to no more than 10% annually of funds received for transportation purposes.