Vote Smart's Synopsis:

Vote to pass a bill that prohibits the governor from unilaterally increasing the state's road debt.

Highlights:

• Authorizes the State Transportation Commission to borrow money and issue notes or bonds for the following purposes (Sec. 18-1):

• To pay all or any portion of or to make loans, grants, or contract payments to pay all or any portion of any capital costs;

• To pay the principal or the principal and interest on notes and, if the state transportation commission considers refunding to be expedient, to refund bonds payable from money in the state trunkline fund or the comprehensive transportation fund or received or to be received from the motor vehicle highway fund or the Michigan transportation fund; and

• To pay all costs relating to the issuance of the bonds or notes described in this section, including, but not limited to, legal, engineering, accounting, and consulting services.

• Authorizes bonds or notes to be issued under this law as separate issues or series with different dates of issuance, but the aggregate of the bonds or notes are subject to the limitations outlined in this law (Sec. 18.b-10).

• Authorizes principal and interest to be payable from 1 or more of the following (Sec. 18-10.c):

• Money described in subsection (3)(a).(3)(a)(i);

• Proceeds of bonds or notes;

• Earning on proceeds of bonds or notes or other funds held for payment of bonds or notes;

• Proceeds of any other security provided to assure timely payment of the bonds or notes;

• Proceeds of federal grants and other money;

• Any combination of the sources.

• Specifies if additionally secured the bonds or notes may be made payable or subject to purchase on-demand or before maturity at the option of the holder at the time and in the manner as determined by the state transportation commission or the designated person as provided in the resolution authorizing the bonds or notes (Sec. 18-10.g).

• Authorizes the state transportation commission to withdraw unused bond authorization by resolution. The legislature may withdraw unused bond authorization by concurrent resolution adopted by a majority of each house of the legislature (Sec. 18-12).

• Requires the Department of Transportation to submit a report on October 1 of each year, and submit an updated report not later than 30 days after issuing a new bond described in subdivision (b), on transportation debt service to the members of the House of Representatives and Senate Appropriations Committees and Transportation Subcommittees, and committees with jurisdiction over transportation, that includes, at a minimum, both of the following (Sec. 18-13):

• The percentage of money that is restricted as to use by section 9 of article IX of the state constitution of 1963 that is spent on debt servicing for the fiscal year; and

• For all bonds issued by this state for transportation purposes, including, bonds, all of the following information:

• A listing of bonds by series;

• The remaining principal for each bond; and

• The anticipated payment schedule for each bond.

Full Bill Text