SENATE BILL NO. 372


EXECUTIVE BUDGET BILL



     February 23, 1999, Introduced by Senators HOFFMAN, MC MANUS,
          STEIL, GOUGEON and GOSCHKA and referred to the Committee on 
          Appropriations.


                                                A bill to make appropriations for the state transportation
  department and certain transportation purposes for the fiscal year
  ending September 30, 2000; to provide for the imposition of fees; to
  provide for reports; to create certain funds and programs; to prescribe
  requirements for certain railroad and bus facilities; to prescribe
  certain powers and duties of certain state departments and officials
  and local units of government; and to provide for the expenditure of
  the appropriations.
  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
  PART 1
  LINE-ITEM APPROPRIATIONS
        Sec. 101. Subject to the conditions set forth in this bill, the
  amounts listed in this part are appropriated for the state
  transportation department and certain state purposes designated in this
  bill for the fiscal year ending September 30, 2000, from the funds
  indicated in this part. The following is a summary of the
  appropriations in this part:
  DEPARTMENT OF TRANSPORTATION
   APPROPRIATION SUMMARY:
        Full-time equated unclassified positions . . . . . . .6.0
        Full-time equated classified positions . . . 3,176.3
   GROSS APPROPRIATION . . . . . . . .     $ 2,810,730,900
  Interdepartmental grant revenues:
   Total interdepartmental grants and 
        intradepartmental transfers. . . . . . .          10,459,500
   ADJUSTED GROSS APPROPRIATION. . . . . .      $ 2,800,271,400
  Federal revenues:
   Total federal revenues. . . . . . .         831,671,000
  Special revenue funds:
   Total local revenues. . . . . . . .           5,300,000
   Total private revenues. . . . . . .                   0
   Total other state restricted revenues . . . . . .        1,963,300,400
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 102. DEBT SERVICE
   State trunkline . . . . . . .      $    35,904,600
   Trunkline bonds, series 1989A-EDF ($100,000,000). . . . . .            6,608,300
   Critical bridge . . . . . . .            3,000,000
   Blue water bridge . . . . . .            2,311,900
   Comprehensive transportation. . . . . .         21,209,300
   GROSS APPROPRIATION . . . . . . . .     $    69,034,100
        Appropriated from:
  Special revenue funds:
   Blue water bridge fund. . . . . . .           2,311,900
   Comprehensive transportation fund . . . . . .          21,209,300
   Michigan transportation fund. . . . . .            9,608,300
   State trunkline fund. . . . . . . .          35,904,600
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 103. INTERDEPARTMENT AND STATUTORY CONTRACTS
   MICHIGAN TRANSPORTATION FUND (MTF)
   MTF grant to department of environmental quality. . . . . .      $       813,000     MTF grant to department of state . . . . . .                56,830,800
   MTF grant to legislative auditor general. . . . . . . .             101,800     MTF grant to department of attorney general . . . . . .                     2,475,200
   STATE TRUNKLINE FUND (STF)
        STF  grant to  department of civil service. . . .  . . .  .           1,320,000     STF grant to d epartme nt of management and budget. . . . . .                   768,100     STF grant to department of natural resources. . . . . . . .                    37,500STF grant to department of state police6,305,700STF grant to department of treasury24,300STF grant to legislative auditor general381,100STATE AERONAUTICS FUND (SAF)
   SAF grant to department of attorney general . . . . . .             114,900     SAF grant to department of civil service. . . . . . . .                        50,000     SAF grant to department of management and budget. . . . . .                    18,200
   SAF grant to department of treasury . . . . . . .               61,500
   SAF grant to legislative auditor general. . . . . . . .              15,400
   COMPREHENSIVE TRANSPORTATION FUND (CTF)
   CTF grant to department of civil service. . . . . . . .              95,000
   CTF grant to department of management and budget. . . . . .               38,600
   CTF grant to department of treasury . . . . . . .                8,900
   CTF grant to legislative auditor general. . . . . . . .            38,900
   GROSS APPROPRIATION . . . . . . . .     $    69,498,900
        Appropriated from:
  Special revenue funds:
   Comprehensive transportation fund . . . . . .             181,400
   Michigan transportation fund. . . . . .           60,220,800
   State aeronautics fund. . . . . . .             260,000
   State trunkline fund. . . . . . . .           8,836,700
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 104. EXECUTIVE DIRECTION
        Full-time equated unclassified positions . . . . . . .6.0
        Full-time equated classified positions . . . . .33.3
   Unclassified salaries . . . . . . .     $       483,700
   Commission audit--33.3 FTE positions. . . . . . .          2,911,900
   GROSS APPROPRIATION . . . . . . . .     $     3,395,600
        Appropriated from:
  Special revenue funds:
   State trunkline fund. . . . . . . .           3,395,600
   State general fund/general purpose. . . . . . . .      $             0
    . . . . Sec. 105.
  ADMINISTRATIVE SERVICES
        Full-time equated classified positions . . . . 138.7
   Administration and data center--103.7 FTE positions . . . . . . $     31,190,500
   Building occupancy charges - property management. . . . . .            4,582,400
   Human resources--30.0 FTE positions . . . . . . .            2,402,200
   Economic development administration--5.0 
        FTE positions. . . . . .              407,800
   Rent. . . . . . . .            1,940,000
   Worker's compensation . . . . . . .         2,528,600
   GROSS APPROPRIATION . . . . . . . .     $    43,051,500
        Appropriated from:
  Federal revenues:
   DOT-FHWA, highway research, planning, and 
        construction . . . . . .            1,000,000
  Special revenue funds:
   Comprehensive transportation fund . . . . . .           1,086,200
   Michigan transportation fund. . . . . .              435,600
   State aeronautics fund. . . . . . .             631,900
   State trunkline fund. . . . . . . .          39,897,800
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 106. BUREAU OF FINANCE AND ADMINISTRATION
        Full-time equated classified positions . . . . 255.5
   Administration--255.5 FTE positions . . . . . . .      $  20,355,500
   GROSS APPROPRIATION . . . . . . . .     $    20,355,500
        Appropriated from:
  Special revenue funds:
   Michigan transportation fund. . . . . .            1,048,100
   State trunkline fund. . . . . . . .          19,307,400
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 107. BUREAU OF TRANSPORTATION PLANNING
        Full-time equated classified positions . . . . 185.1
   Administration--185.1 FTE positions . . . . . . .      $    20,674,700
   Grants to regional planning councils. . . . . . .            488,800
   GROSS APPROPRIATION . . . . . . . .     $    21,163,500
        Appropriated from:
  Federal revenues:
   DOT-FHWA, highway research, planning, and 
        construction . . . . . .           11,041,000
  Special revenue funds:
   Comprehensive transportation fund . . . . . .           1,679,500
   Michigan transportation fund. . . . . .            5,755,200
  
   State aeronautics fund. . . . . . .             267,000
   State trunkline fund. . . . . . . .           2,420,800
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 108. BUREAU OF HIGHWAYS
        Full-time equated classified positions . . . 1,658.1
   Engineering operations--826.3 FTE positions . . . . . .     $    23,250,900
   Maintenance operations--78.0 FTE positions. . . . . . .           6,904,700
   Program services--753.8 FTE positions . . . . . .         35,431,100
   GROSS APPROPRIATION . . . . . . . .     $    65,586,700
        Appropriated from:
  Interdepartmental grants and intradepartmental
   transfers:
        IDT, intradepartmental charges . . . . . . .              207,500
  Federal revenues:
   DOT-FHWA, highway research, planning, and 
        construction . . . . . .            3,035,000
  Special revenue funds:
   Michigan transportation fund. . . . . .            2,182,200
   State trunkline fund. . . . . . . .          60,162,000
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 109. HIGHWAY MAINTENANCE
        Full-time equated classified positions . . . . 707.1
   State trunkline operations--707.1 FTE positions . . . . . .      $ 228,899,400
   GROSS APPROPRIATION . . . . . . . .     $   228,899,400
        Appropriated from:
  Interdepartmental grants and intradepartmental
        transfers:
   IDT, intradepartmental charges. . . . . . . .          10,252,000
  Special revenue funds:
   State trunkline fund. . . . . . . .         218,647,400
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 110. ROAD AND BRIDGE PROGRAMS
   State trunkline federal aid and road and 
        bridge construction. . . . . . . .      $   898,203,700
   Local federal aid and road and bridge 
        construction . . . . . .          195,827,000     Grants to local programs . . . . . . . .          33,000,000
   Rail grade crossing . . . . . . . .           3,000,000
   Critical bridge program . . . . . .           5,250,000
   County road commissions . . . . . .         558,320,300
   Cities and villages . . . . . . . .        311,288,600
   GROSS APPROPRIATION . . . . . . . .     $ 2,004,889,600
        Appropriated from:
  Federal revenues:
   DOT-FHWA, highway research, planning, and 
        construction . . . . . .          785,449,000
  Special revenue funds:
   Local funds . . . . . . .           5,000,000
   Michigan transportation fund. . . . . .          910,608,900
   State trunkline fund. . . . . . . .         303,831,700
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 111. BLUE WATER BRIDGE
        Full-time equated classified positions . . . . .33.0
   Blue water bridge operations--33.0 FTE positions. . . . . .      $  10,083,500
   GROSS APPROPRIATION . . . . . . . .     $    10,083,500
        Appropriated from:
  Special revenue funds:
   Blue water bridge fund. . . . . . .          10,083,500
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 112. TRANSPORTATION ECONOMIC DEVELOPMENT FUND
   Forest roads. . . . . . .     $     5,040,000
   Rural county urban system . . . . . . .            2,500,000
   Target industries/economic redevelopment. . . . . . . .          16,629,500
   Urban county congestion . . . . . .           6,564,700
   Rural county primary. . . . . . . .         6,564,700
   GROSS APPROPRIATION . . . . . . . .     $    37,298,900
        Appropriated from:
  Special revenue funds:
   Michigan transportation fund. . . . . .           33,298,900
   State trunkline fund. . . . . . . .           4,000,000
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 113. BUREAU OF AERONAUTICS
        Full-time equated classified positions . . . . .56.0
   Administration--56.0 FTE positions. . . . . . . .      $     6,732,100
   Air service program . . . . . . . .         1,000,000
   GROSS APPROPRIATION . . . . . . . .     $     7,732,100
        Appropriated from:
  Special revenue funds:
   State aeronautics fund. . . . . . .           7,732,100
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 114. BUREAU OF URBAN AND PUBLIC TRANSPORTATION
        Full-time equated classified positions . . . . 109.5
   Administration--109.5 FTE positions . . . . . . .      $   8,650,700
   GROSS APPROPRIATION . . . . . . . .     $     8,650,700
        Appropriated from:
  Special revenue funds:
   Comprehensive transportation fund . . . . . .           7,021,500
   Michigan transportation fund. . . . . .            1,629,200
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 115. BUS TRANSIT DIVISION; STATUTORY OPERATING
   Local bus operating . . . . . . . .     $   144,575,400
   Nonurban operating/capital. . . . . . .          6,646,000
   GROSS APPROPRIATION . . . . . . . .     $   151,221,400
        Appropriated from:
  Federal revenues:
   DOT, federal transit act. . . . . . . .            6,546,000
  Special revenue funds:
   Comprehensive transportation fund . . . . . .         144,575,400
   Local funds . . . . . . .             100,000
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 116. INTERCITY PASSENGER AND FREIGHT
   Freight property management . . . . . .      $     2,000,000
   Detroit/Wayne County port authority . . . . . . .              301,800
   Intercity bus equipment . . . . . .           2,824,500
   Rail passenger service. . . . . . .           8,812,700     Freight preservation and development. . . . . . .            7,500,000
   Rail infrastructure loan program. . . . . . .           2,000,000
   Intercity bus service development . . . . . .           2,025,500
   Marine passenger service. . . . . . . .              800,000
   Terminal development. . . . . . . .         1,000,000
   GROSS APPROPRIATION . . . . . . . .     $    27,264,500
        Appropriated from:
  Federal revenues:
   DOT, federal transit act. . . . . . . .            1,000,000
   DOT-FRA, local rail freight assistance. . . . . .            2,000,000
   DOT-FRA, rail passenger/HSGT. . . . . .            3,000,000
  Special revenue funds:
   Comprehensive transportation fund . . . . . .          18,714,500     Intercity bus equipment fund. . . . . .              500,000
   Local funds . . . . . . .              50,000
   Rail preservation fund. . . . . . .           2,000,000
   State general fund/general purpose. . . . . . . .      $             0
        Sec. 117. PUBLIC TRANSPORTATION DEVELOPMENT
   Specialized services. . . . . . . .     $     3,600,100
   Municipal credit program. . . . . . . .            2,000,000
   Bus capital . . . . . . .          29,400,000
   Ride sharing. . . . . . .             330,700
   Van pooling . . . . . . .             145,000
   Bus property management . . . . . .             125,000
   Service development and new technology. . . . . .            1,675,000
   Planning grants . . . . . . .              150,000     Audit settlements. . . . . . .             200,000
   Regional service coordination . . . . . . . .           1,000,000
   Work first initiative . . . . . . .         3,979,200
   GROSS APPROPRIATION . . . . . . . .     $    42,605,000
        Appropriated from:
  Federal revenues:
   DOT, federal transit act. . . . . . . .           18,600,000
  Special revenue funds:
   Comprehensive transportation fund . . . . . .          23,855,000
   Local funds . . . . . . .             150,000
   State general fund/general purpose. . . . . . . .      $             0
  PART 2
  PROVISIONS CONCERNING APPROPRIATIONS
  GENERAL SECTIONS
        Sec. 201. (1) Pursuant to section 30 of article IX of the state
  constitution of 1963, total state spending under part 1 for fiscal year
  1999-2000 is $1,963,300,400.00 and state appropriations to be paid to
  local units of government are as follows: 
   DEPARTMENT OF TRANSPORTATION
        Local grant program. . . . . . . .      $    33,000,000
        Economic development fund. . . . . . . .          20,669,400
        Grants to cities and villages. . . . . . . .          311,288,600
        Grants to county road commissions. . . . . .          558,320,300
        Critical bridge program. . . . . .            5,250,000
        Grants to regional planning councils . . . . . . .             488,800
        Local bus operating. . . . . . . .          144,575,400
        Bus capital. . . . . . .           12,000,000
        Marine passenger service . . . . . . . .             800,000
        Detroit/Wayne County port authority. . . . . . . .             301,800
        Local ride sharing operating grants. . . . . . . .             330,700
        Planning grants. . . . . . . .             150,000
        Municipal credit program . . . . . . . .           2,000,000
        Specialized services . . . . . . .           3,600,100
        Total payments to local units of government. . . . . .      $ 1,092,775,100
        (2) If it appears to the principal executive officer of a
  department or branch that state spending to local units of government
  will be less than the amount that was projected to be expended under
  subsection (1), the principal executive officer shall immediately give
  notice of the approximate shortfall to the state budget director.
        Sec. 202. The expenditures and funding sources authorized under
  this bill are subject to the management and budget act, 1984 PA 431,
  MCL 18.1101 to 18.1594.
        Sec. 203.  (1) Beginning October 1, 1999, a hiring freeze is
  imposed on the state classified civil service. State departments and
  agencies are prohibited from hiring any new full-time state classified
  civil service employees and prohibited from filling any vacant state
  classified civil service positions.  This hiring freeze does not apply
  to internal transfers of classified employees from one position to
  another within a department or to positions that are funded with 80% or
  more federal or restricted funds.
          (2) The state budget director shall grant exceptions to thishiring freeze when the state budget director believes that the hiring
  freeze will result in rendering a state department or agency unable to
  deliver basic services. 
        Sec. 204. The department of civil service shall bill departments
  and agencies at the end of the first fiscal quarter for the 1% charge
  authorized by section 5 of article XI of the state constitution of
  1963.  Payments shall be made for the total amount of the billing by
  the end of the second fiscal quarter.
        Sec. 205.  As used in this bill:
        (a) "CTF" means comprehensive transportation fund.
        (b) "Department" means the Michigan department of transportation.
        (c) "DOT" means the United States department of transportation.
        (d) "DOT-FHWA" means DOT federal highway administration.
        (e) "DOT-FRA" means DOT federal railroad administration.
        (f) "DOT-FRA, rail passenger/HSGT" means DOT federal railroad
  administration, high-speed ground transportation.
        (g) "EDF" means economic development fund.
        (h) "FTE" means full-time equated.
        (i) "IDG" means interdepartmental grant.
        (j) "IDT" means intradepartmental transfer.
        (k) "MDTR" means Michigan department of treasury.
        (l) "MTF" means Michigan transportation fund.
        (m) "RIF" means recreation improvement fund.
        (n) "SAF" means state aeronautics fund.
        (o) "STF" means state trunkline fund.
        Sec. 206. (1) In addition to the funds appropriated in part 1,
  there is appropriated an amount not to exceed $40,000,000.00 for
  federal contingency funds.  These funds are not available for
  expenditure until they have been transferred to another line item in
  this bill pursuant to section 393(2) of the management and budget act,
    1984 PA 431, MCL 18.1393.        (2) In addition to the funds appropriated in part 1, there is
  appropriated an amount not to exceed $40,000,000.00 for state
  restricted contingency funds.  These funds are not available for
  expenditure until they have been transferred to another line item in
  this bill pursuant to section 393(2) of the management and budget act,
  1984 PA 431, MCL 18.1393.
        (3) In addition to the funds appropriated in part 1, there is
  appropriated an amount not to exceed $1,000,000.00 for local
  contingency funds.  These funds are not available for expenditure until
  they have been transferred to another line item in this bill pursuant
  to section 393(2) of the management and budget act, 1984 PA 431, MCL
  18.1393.
        (4) In addition to the funds appropriated in part 1, there is
  appropriated an amount not to exceed $1,000,000.00 for private
  contingency funds.  These funds are not available for expenditure until
  they have been transferred to another line item in this bill pursuant
  to section 393(2) of the management and budget act, 1984 PA 431, MCL
  18.1393.
  DEPARTMENTAL SECTIONS
        Sec. 301. The department may establish a fee schedule and collect
  fees sufficient to cover the costs to issue the permits that the
  department is authorized by law to issue upon request, and for which
  fees are not otherwise stipulated by law.  A bridge authority shall
  hold 3 public hearings on a change in any toll charged by the authority
  at least 30 days before the toll change will become effective.  Two of
  the hearings shall be held within 5 miles of the bridge over which the
  bridge authority has jurisdiction. One hearing shall be held in
  Lansing.
        Sec. 302. The department shall prepare an official transportation
  map that shall be distributed without charge.
          Sec. 303. If, as a requirement of bidding on a highway project, the department requires a contractor to submit financial or proprietary
  documentation as to how the bid was calculated, that bid documentation
  shall be kept confidential and shall not be disclosed other than to a
  department representative without the contractor's written consent. 
  The department may disclose the bid documentation if necessary to
  address or defend a claim by a contractor.
        Sec. 304.  The department may permit space on public passenger
  transportation properties to be occupied by public or private tenants
  on a competitive market rate basis.  The department may require that
  revenue from the tenants be placed in an account to be used to pay the
  costs to maintain and improve the property.
        Sec. 305. The department shall aggressively pursue compliance with
  contract specifications for construction and maintenance of state
  highways.  The department shall identify contractors who fail to meet
  minimum standards and will actively pursue remuneration efforts.
  Collections shall be deposited into the appropriate fund accounts. 
        Sec. 306. The department shall continue its efforts to reduce
  administrative costs and provide the maximum funding possible for
  construction projects.
        Sec. 307. The department shall not use funds appropriated under
  part 1 on behalf of a local governmental unit to pay the amount
  required for that local governmental unit to participate in the federal
  advance construct program.
        Sec. 308. (1) At the close of the fiscal year ending September 30,
  2000, any unencumbered and unexpended balance in the state trunkline
  fund shall remain in the state trunkline fund and shall carry forward
  and be appropriated for federal aid road and bridge programs for
  projects contained in the annual state transportation program.
        Sec. 309. (1) From funds appropriated in part 1, the department may
  increase the state infrastructure bank program and grant or loan funds
    in accordance with regulations of the state infrastructure bank program of the United States department of transportation.  The state
  infrastructure bank is to be administered by the department for the
  purpose of providing a revolving, self-sustaining resource for
  financing transportation infrastructure projects.
        (2) In addition to funds provided in subsection (1), money received
  by the state as federal grants, repayment of state infrastructure bank
  loans, or other reimbursement or revenue received by the state as a
  result of projects funded by the program shall be deposited in the
  revolving state infrastructure bank fund and shall be available for
  transportation infrastructure projects.  At the close of the fiscal
  year, any funds remaining in the state infrastructure bank fund shall
  remain in the fund and be carried forward into the succeeding fiscal
  year.
        Sec. 310.  From funds appropriated in part 1, money received by the
  department in payment for advanced purchase right-of-way, either as a
  result of project programming from federal, state, local, or private
  sources, or from sale as excess property, will be restricted for the
  purchase of other advanced purchase right-of-way.  At the end of the
  fiscal year, unexpended funds shall remain in the advanced purchase
  right-of-way fund and shall be used for this purpose in the succeeding
  fiscal year.
        Sec. 311.  The department shall coordinate with the Michigan
  information center on the development of right-of-way mapping
  books.
  FEDERAL
  . . . . . .      Sec. 401. (1)
  Twenty-three to twenty-seven percent of the remaining DOT-FHWA highway
  research, planning, and construction federal funds appropriated in
  section 110 shall be allocated to programs administered by local
  jurisdictions after deduction of the following:
        (a) Funds that are specifically allocated at the federal level to
  the state or local jurisdictions.
            (b) Funds allocated by the department to the state and to local
  jurisdictions through a competitive process.
        (2) Federal aid excluded from the calculation of funding allocated
  to programs administered by local jurisdictions in subsection (1)
  includes, but is not limited to, congestion mitigation and air quality
  funds, federal bridge funds, transportation enhancement funds, funds
  distributed at the discretion of the United States secretary of
  transportation, and congressionally designated funds.
        (3) The funds shall be distributed to eligible local agencies for
  transportation purposes in a manner consistent with state and federal
  law.
        (4) The department will attempt to allocate federal aid to highways
  distributed to local jurisdictions in subsection (1) in a manner that
  produces a 25% average allocation of applicable funds to programs for
  local jurisdictions in each fiscal year through the fiscal year ending
  September 30, 2005.  Beginning in the fiscal year ending September 30,
  1999, the average allocation of applicable federal aid to highway funds
  to programs for local jurisdictions shall be the average of the amount
  distributed to local jurisdictions under subsection (1) and similarly
  calculated distributions in each succeeding fiscal year.
        (5) The allocation percentage described in subsection (1) shall be
  adjusted to reflect any voluntary agreements made by the department
  with local jurisdictions regarding the transfer of federal aid eligible
  roadways or the state buyout of local federal aid.
  MICHIGAN TRANSPORTATION FUND
        Sec. 501. The money received under the motor carrier act, 1933 PA
  254, MCL 475.1 to 479.43, and not appropriated to the department of
  consumer and industry services or the department of state police, is
  deposited in the Michigan transportation fund.
          Sec. 502. The department of treasury shall perform audits and make investigations of the disposition of all state funds received by county
  road commissions or county boards of commissioners, as applicable, and
  cities and villages for transportation purposes to determine compliance
  with the terms and conditions of 1951 PA 51, MCL 247.651 to 247.675. 
  County road commissions or county boards of commissioners, as
  applicable, and cities and villages shall make available to the
  department of treasury the pertinent records for the audit.
        Sec. 503. The department shall reimburse a city or township that
  has received prior approval to eliminate or cut roadside weeds due to
  negligence on the part of a county or private contractor in performing
  its contractual obligations and shall deduct that amount from the funds
  appropriated to the county or paid to the contractor involved.
        Sec. 504. (1) The funds appropriated in part 1 for the economic
  development programs shall not lapse at the end of the fiscal year but
  shall carry forward each fiscal year for the purposes for which
  appropriated in accordance with 1987 PA 231, MCL 247.901 to 247.913.
        (2) Interest earned in the department of transportation economic
  development fund shall remain in the fund and shall be allocated to the
  respective programs based on actual interest earned at the end of each
  fiscal year.
        (3) The department of transportation economic development fund may
  receive and expend federal, local, or private funds or restricted
  source funds such as interest earnings for projects that are consistent
  with the programmatic mission of the fund in addition to funds
  appropriated in part 1.
        Sec. 505. (1) Funds from the Michigan transportation fund (MTF)
  shall be distributed to the comprehensive transportation fund (CTF),
  the economic development fund (EDF), the recreational improvement fund
  (RIF), and the state trunkline fund (STF), in accordance with this bill
    and part 711 (recreation improvement fund) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.71101
  to 324.71108, and may only be used as specified in this bill, 1951 PA
  51, MCL 247.651 to 247.675, and part 711 (recreation improvement fund)
  of the natural resources and environmental protection act, 1994 PA 451,
  MCL 324.71101 to 324.71108.
        (2) The amounts appropriated and transferred to various state
  agencies from part 1 shall be expended from the transportation funds
  pursuant to annual contracts between the department and state agencies
  providing tax and fee collection and other services applicable to
  transportation.  The contracts shall be executed prior to the transfer
  of these funds.  The contracts shall provide, but are not limited to,
  the following data applicable to each state agency:
        (a) Estimated costs to be recovered from transportation funds.
        (b) Description of services financed with transportation funds.
        (3) If the spending authorization accounts also are to be used for
  financing other than transportation fund services, the contracts shall
  include detailed cost allocation methods that are appropriate to the
  type of services being provided and the activities financed and
  supporting rationale for the portion of costs allocated to
  transportation funds.
        (4) At the close of each fiscal year and before April 1, each state
  agency shall submit a written report to the state budget director
  stating by spending authorization account the amount of estimated funds
  contracted with the department, the amount of funds expended, and the
  amount of funds returned to the transportation funds.  A copy of the
  report shall be submitted to the auditor general and the report shall
  be subject to audit by the auditor general.
        Sec. 506. Of the amount appropriated in part 1 from the Michigan
  transportation fund to the department of state, $186,600.00 represents
  the additional cost of issuing specialized license plates for veterans
    and national guard members, as included in 1989 PAs 16, 17, 18, and 19, MCL 257.803i, 257.803j, 257.803k, and 257.803l.  The department of
  state shall prepare an annual report on the number of and the
  additional costs associated with the veteran license plates to the
  department, the state budget director, the house and senate fiscal
  agencies, and the chairpersons of the house and senate appropriations
  subcommittees on transportation.  Any unspent funds based on these
  annual reports shall lapse to the Michigan transportation fund and be
  distributed in accordance with 1951 PA 51, MCL 247.651 to 247.675.
        Sec. 507. (1) Of the amount appropriated in part 1 from the
  Michigan transportation fund to the department of state, $187,600.00
  represents the additional cost of issuing generic license plates for
  nonprofit fraternal or public service organizations, as included in
  section 803m of the Michigan vehicle code, 1949 PA 300, MCL 257.803m.
        (2) The department of state shall prepare an annual report on the
  number of, and the additional costs associated with, the generic
  license plates to the department, the state budget director, the house
  and senate appropriations subcommittees on transportation, and the
  house and senate fiscal agencies.
        (3) Any unspent funds based on these annual reports shall lapse to
  the Michigan transportation fund to be distributed in accordance with
  1951 PA 51, MCL 247.651 to 247.675.
        Sec. 508. (1) Commemorative and specialty license plate fee revenue
  collected by the department of state and deposited into the Michigan
  transportation fund is authorized for expenditure by the department of
  state up to the amount of revenue collected, but not to exceed
  $9,353,300.00, the amount appropriated to the department of state in
  part 1 to administer the commemorative and specialty license plate
  program pursuant to section 225 of the Michigan vehicle code, 1949 PA
  300, MCL 257.225.
        (2) Commemorative and specialty license plate fee revenue collected
    by the department of state and deposited in the Michigan transportation fund in addition to that appropriated in part 1 to the
  department of state shall be available for other Michigan
  transportation fund-supported programs.
  STATE TRUNKLINE FUND
        Sec. 601. Of the amount of state funds appropriated for road and
  bridge projects under this bill, the department, counties, and cities
  and villages shall, whenever possible, secure warranties for contracted
  construction work.
  . . . . . .      Sec. 602. From
  the amounts appropriated in part 1 for urban county congestion from the
  transportation economic development fund for the fiscal year ending
  September 30, 2000, $2,000,000.00 may be used for the purpose of
  matching, at not more than 50%, private and local funds for the AAA
  Michigan road improvement program.  The AAA Michigan road improvement
  program, a public/private partnership, was established to fund or
  assist funding road improvements in urban areas to reduce the number
  and severity of crashes at high crash locations.
        Sec. 603. From the amounts appropriated in part 1 for forest roads
  from the transportation economic development fund in the fiscal year
  ending September 30, 2000, $40,000.00 shall be used for the purpose of
  establishing truck inspection stations. 
  COMPREHENSIVE TRANSPORTATION FUND
        Sec. 701. Money that is returned to the state as repayment for a
  loan for intercity bus equipment is not money to be deposited in the
  comprehensive transportation fund under section 10b of 1951 PA 51, MCL
  247.660b, but is money that is deposited in an intercity bus equipment
  fund for appropriation for the purchase and repair of intercity bus
  equipment.  Proceeds received by the state from the sale of intercity
  bus equipment are deposited in an intercity bus equipment fund for
  appropriation for the purchase and repair of intercity bus equipment.
  Security deposits from the lease of state-owned intercity bus equipment
    not returned to the lessee of the equipment under terms of the lease agreement are deposited in an intercity bus equipment fund
  for appropriation for the repair of intercity bus equipment.
        Sec. 702. Money that is received by the state as repayment for
  loans made for rail or water freight capital projects, and as a result
  of the sale of property or equipment used or projected to be used for
  rail or water freight projects shall be deposited in the fund created
  by section 17 of the state transportation preservation act of 1976,
  1976 PA 295, MCL 474.67.
        Sec. 703. The appropriation in part 1 for van pooling shall be
  administered by the department through grants to eligible authorities
  and eligible governmental agencies to insure coordination between van
  and car pooling programs and the transit systems operated by the
  eligible authorities and eligible governmental agencies. 
        Sec. 704. From the funds appropriated in part 1, $2,000,000.00 is
  allocated for a rail infrastructure loan program.  The program shall
  provide noninterest bearing loans for rail infrastructure improvements. 
  The department shall evaluate loan applications according to the
  relative merit of the project in conjunction with program goals.  The
  transportation commission shall approve the loans.  The loans shall
  fund not less than 90% of the rail portion of project costs, and the
  loan repayment period shall not exceed 10 years.  Local governments,
  railroads, and current or potential users of freight railroad services
  are eligible applicants. At the end of the fiscal year, unexpended
  funds shall remain in the rail infrastructure loan program and shall be
  available to be allocated for the purposes of the program in the
  succeeding fiscal year.  Money that is received by this state as
  repayment for rail infrastructure loans made pursuant to this program
  shall remain within the rail infrastructure loan program and shall be
  allocated for the purposes of the program.  The state's total
  contribution to the rail infrastructure loan program shall not exceed
  $15,000,000.00.
            Sec. 705. Appropriated in part 1 is $3,979,200.00 for the work
  first initiative.  Funding earmarked for the work first initiative is
  in addition to current program support for this initiative.                      Sec. 706. The Detroit/Wayne County port authority shall issue a
  complete operations assessment and a financial disclosure statement to
  the department by December 15, 2000.
        Sec. 707. For the fiscal year ending September 30, 2000, each
  eligible authority and each eligible governmental agency which provides
  public transportation services in urbanized areas with a Michigan
  population of less than or equal to 100,000 and nonurbanized areas
  under section 5311 of title 49 of the United States Code, 49 U.S.C.
  5311, shall receive a grant of up to 60% of its eligible operating
  expenses.  Each eligible authority and each eligible government agency
  which provides public transportation services in urbanized areas with a
  Michigan population of greater than 100,000 under section 5311 of title
  49 of the United States Code, 49 U.S.C. 5311, shall receive a grant of
  up to 50% of its eligible operating expenses.
        Sec. 708.  Of the funds appropriated in part 1 for local bus
  operating and marine passenger services, the department shall not
  allocate any funds to pay the operating cost of services provided by
  water vehicles.
  AERONAUTICS FUND
        Sec. 801. At the close of the fiscal year ending September 30,
  2000, any unobligated and unexpended balance in the state aeronautics
  fund created in the aeronautics code of the state of Michigan, 1945 PA
  327, MCL 259.1 to 259.208, shall lapse to the state aeronautics fund
  and be appropriated by the legislature in the immediately succeeding
  fiscal year.
  
  
  Final page.