SB 578: Highways: bridges; movable bridge fund; modify and create neighborhood roads fund. Amends sec. 11g of 1951 PA 51 (MCL 247.661g) & adds sec. 13c. TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4182'25, HB 4183'25, HB 4951'25, HB 4961'25, HB 4968'25 - Michigan

As Passed by the Senate → Substitute (H-1) · 5 edits

MODERATE

The bill was amended to remove references to section 10a and add new provisions for a movable bridge fund, establishing standards for bridge operations and funding distribution. This changes the bill's focus from general road classification and funding to specifically addressing movable bridge infrastructure and creating a dedicated fund for their operation and maintenance.

Scope change

The bill's scope narrowed from covering general road classification and funding to specifically focusing on movable bridges and their operational standards, while removing broader road transfer provisions.

SCOPE

Removed provisions related to section 10a regarding road classification transfers and revenue worth calculations for county and local roads.

Changed the bill to focus on adding section 13c and amending section 11g rather than amending sections 10a and 11g.

FISCAL

Created a new movable bridge fund in the state treasury to receive money from any source for bridge-related purposes.

REQUIREMENT

Added requirements for bridge operators to submit operational procedures and costs to the state department annually.

ENFORCEMENT

Established that contractors operating movable bridges must maintain insurance in amounts specified by the department.

Senate Introduced Bill → As Passed by the House · 7 edits · Oct 2, 2025

MODERATE

This bill significantly restructures Michigan's transportation funding by creating two new funds (movable bridge fund and neighborhood roads fund) and replacing the previous section 10a with detailed allocation formulas. The changes establish specific funding amounts and percentages for various transportation purposes, including bridge operations, local road maintenance, and infrastructure projects, with different distribution rules for different fiscal years.

Scope change

The bill expands the scope of transportation funding by adding new funds and changing how money is distributed among county road commissions, city and village road agencies, and the state trunk line fund.

FISCAL

Created a new movable bridge fund to support operation and maintenance of publicly owned movable bridges, with specific operational cost definitions and distribution requirements.

Created a new neighborhood roads fund with specific annual distribution amounts and percentages for local bridge repair, grade separation projects, and county/city road agencies.

Replaced the previous section 10a mileage transfer system with new funding allocation formulas that specify exact dollar amounts and percentages for different transportation categories.

Created a new infrastructure projects authority fund to support high-capacity mobility projects with specific investment criteria and reporting requirements.

TIMELINE

Established different funding distribution rules for fiscal years 2026-2030 versus fiscal years beginning 2031, with varying percentages for county and city allocations.

REQUIREMENT

Added new reporting requirements for the infrastructure projects authority fund, including annual status reports to the governor, transportation commission, and legislature by December 30.

ELIGIBILITY

Added matching fund provisions stating that matching funds are not required from local governments but may be requested from other sources.

As Passed by the House → As Passed by the Senate · 5 edits · Oct 3, 2025

MODERATE

This bill was amended to add new provisions for calculating and distributing transportation funds, including a new section 10a that establishes annual mileage tracking and revenue worth calculations for jurisdictional transfers. The Senate version also modified the movable bridge fund distribution rules and removed an entirely new section 13c that would have created a neighborhood roads fund with specific funding allocations. These changes affect how Michigan distributes transportation funding between state, county, city, and village jurisdictions.

Scope change

The bill's scope was expanded to include amendments to section 10a in addition to section 11g, and the neighborhood roads fund provisions were removed entirely.

FISCAL

New section 10a establishes annual determination of transferred highway mileage and calculates revenue worth per mile for county primary and local roads, which determines how much money transfers between state and local jurisdictions.

Modified movable bridge fund distribution rules to allow the department to use remaining funds for other local federal bridge mandates if no other funding source is available, changing from mandatory to permissive language.

Removed entire section 13c that would have created a new neighborhood roads fund with specific funding allocations for bridge repairs, grade separation projects, and transportation infrastructure.

REQUIREMENT

Added requirement that cities and villages with 25,000+ population must certify trunk line mileage transferred to local jurisdiction at twice its measured length if classified as major streets.

TECHNICAL

Corrected grammatical errors and inconsistent language throughout the bill text, including fixing 'shall must be' to 'shall be' and clarifying contract language regarding Act No. 166 of 1965.

Substitute (H-1) - 3 → Senate Concurred Bill · 7 edits

MODERATE

This bill amends the Michigan Transportation Act to create a new Neighborhood Roads Fund and modify the Movable Bridge Fund. It establishes specific funding distribution formulas for bridge operations and infrastructure projects, with different allocation percentages for different time periods. The changes aim to better allocate transportation funds between county roads, city roads, public transportation, and infrastructure projects based on evolving state needs.

Scope change

The bill expands the scope of transportation funding by creating a new Neighborhood Roads Fund and restructuring how the Movable Bridge Fund distributes money to various entities. It also adds requirements for federal bridge mandate cost estimates and creates a new Infrastructure Projects Authority Fund.

FISCAL

Created a new Neighborhood Roads Fund with specific deposit and investment requirements, separate from existing transportation funds.

Changed Movable Bridge Fund distribution rules to include operational cost estimates and federal mandate cost estimates, with specific percentages allocated to different entities.

Established a new Infrastructure Projects Authority Fund with specific criteria for qualified investments in high-capacity mobility transportation projects.

TIMELINE

Set specific timeframes for fund distributions, with different allocation percentages applying to fiscal years ending September 30, 2026 through 2030 versus fiscal years beginning September 30, 2031.

REQUIREMENT

Added requirement for department to develop operational cost estimates for all publicly owned movable bridges and submit annual reports on infrastructure projects funded.

ELIGIBILITY

Modified eligibility criteria for infrastructure projects to prioritize high-capacity mobility, regional connectivity, and projects serving lower density areas or first/last-mile transportation needs.

DEFINITION

Added new definitions for 'multimodal' transportation and 'qualified investment' to clarify fund usage requirements.

Highways: bridges; movable bridge fund; modify and create neighborhood roads fund. Amends sec. 11g of 1951 PA 51 (MCL 247.661g) & adds sec. 13c. TIE BAR WITH: HB 4180'25, HB 4181'25, HB 4182'25, HB 4183'25, HB 4951'25, HB 4961'25, HB 4968'25

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