EXECUTIVE BUDGET BILL
February 21, 2006, Introduced by Rep. Brown 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, 2007; 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, 2007, from the
funds indicated in this part. The following is a summary of the
appropriations in this part:
STATE TRANSPORTATION DEPARTMENT
APPROPRIATION SUMMARY:
Full-time equated unclassified positions ......... 6.0
Full-time equated classified positions........ 3,030.3
GROSS APPROPRIATION.................................... $ 3,442,385,100
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 3,442,385,100
Federal revenues:
Total federal revenues................................. 1,169,386,000
Special revenue funds:
Total local revenues................................... 47,500,000
Total private revenues................................. 0
Total other state restricted revenues.................. 2,225,499,100
State general fund/general purpose..................... $ 0
Sec. 102. DEBT SERVICE
State trunkline........................................ $ 152,300,400
Economic development................................... 15,025,800
Local bridge fund...................................... 3,000,000
Blue Water Bridge...................................... 2,878,600
Airport safety and protection plan..................... 5,607,400
Comprehensive transportation........................... 28,807,800
GROSS APPROPRIATION.................................... $ 207,620,000
Appropriated from:
Federal revenues:
DOT-FHWA, highway research, planning, and construction. 55,000,000
Special revenue funds:
Blue Water Bridge fund................................. 2,878,600
Comprehensive transportation fund...................... 28,807,800
Economic development fund.............................. 15,025,800
Local bridge fund...................................... 3,000,000
State aeronautics fund................................. 5,607,400
State trunkline fund................................... 97,300,400
State general fund/general purpose..................... $ 0
Sec. 103. COLLECTION, ENFORCEMENT, AND OTHER AGENCY
SUPPORT SERVICES
MTF grant to department of environmental quality....... $ 1,020,800
MTF grant to department of state for collection of
revenue and fees..................................... 20,000,000
MTF grant to department of treasury.................... 8,801,500
MTF grant to legislative auditor general............... 204,300
STF grant to department of attorney general............ 2,708,300
STF grant to department of civil service............... 2,700,000
STF grant to department of history, arts, and
libraries............................................ 73,500
STF grant to department of management and budget....... 1,366,500
STF grant to department of state police................ 7,967,000
STF grant to department of treasury.................... 212,900
STF grant to legislative auditor general............... 474,600
SAF grant to department of attorney general............ 151,400
SAF grant to department of civil service............... 55,000
SAF grant to department of history, arts, and
libraries............................................ 2,100
SAF grant to department of management and budget....... 38,600
SAF grant to department of treasury.................... 74,300
SAF grant to legislative auditor general............... 19,600
CTF grant to attorney general.......................... 153,400
CTF grant to department of civil service............... 95,000
CTF grant to department of history, arts, and
libraries............................................ 3,400
CTF grant to department of management and budget....... 62,400
CTF grant to department of treasury.................... 2,400
CTF grant to legislative auditor general............... 25,200
GROSS APPROPRIATION.................................... $ 46,212,200
Appropriated from:
Special revenue funds:
Comprehensive transportation fund...................... 341,800
Michigan transportation fund........................... 30,026,600
State aeronautics fund................................. 341,000
State trunkline fund................................... 15,502,800
State general fund/general purpose..................... $ 0
Sec. 104. EXECUTIVE DIRECTION
Full-time equated unclassified positions ......... 6.0
Full-time equated classified positions........... 31.3
Unclassified salaries.................................. $ 532,200
Asset management council............................... 1,626,400
Commission audit--31.3 FTE positions................... 3,382,900
GROSS APPROPRIATION.................................... $ 5,541,500
Appropriated from:
Special revenue funds:
Michigan transportation fund........................... 1,626,400
State trunkline fund................................... 3,915,100
State general fund/general purpose..................... $ 0
Sec. 105. BUSINESS SUPPORT
Full-time equated classified positions........... 56.5
Business support services--25.5 FTE positions.......... $ 3,177,100
Human resources services--22.0 FTE positions........... 2,487,800
Economic development and enhancement services--9.0 FTE.
positions........................................... 1,131,000
Property management.................................... 7,331,500
Human resources optimization user charges.............. 199,500
Worker's compensation.................................. 2,136,000
GROSS APPROPRIATION.................................... $ 16,462,900
Appropriated from:
Special revenue funds:
Comprehensive transportation fund...................... 1,354,700
Economic development fund.............................. 485,300
Michigan transportation fund........................... 175,800
State aeronautics fund................................. 886,500
State trunkline fund................................... 13,560,600
State general fund/general purpose..................... $ 0
Sec. 106. INFORMATION TECHNOLOGY
Information technology services and projects........... $ 27,876,500
GROSS APPROPRIATION.................................... $ 27,876,500
Appropriated from:
Federal revenues
DOT-FHWA, highway research, planning, and construction. 1,446,900
Special revenue funds:
Blue Water Bridge fund................................. 47,000
Comprehensive transportation fund...................... 234,300
Economic development fund.............................. 37,100
Michigan transportation fund........................... 243,400
State aeronautics fund................................. 143,700
State trunkline fund................................... 25,724,100
State general fund/general purpose..................... $ 0
Sec. 107. FINANCE, CONTRACTS, AND SUPPORT SERVICES
Full-time equated classified positions.......... 255.5
Finance, contracts and support services--255.5 FTE
positions........................................... $ 25,551,400
GROSS APPROPRIATION.................................... $ 25,551,400
Appropriated from:
Special revenue funds:
Michigan transportation fund........................... 1,403,900
State trunkline fund................................... 24,147,500
State general fund/general purpose..................... $ 0
Sec. 108. TRANSPORTATION PLANNING
Full-time equated classified positions.......... 174.0
Transportation planning services--174.0 FTE positions.. $ 35,192,100
Grants to regional planning councils................... 488,800
GROSS APPROPRIATION.................................... $ 35,680,900
Appropriated from:
Federal revenues:
DOT-FHWA, highway research, planning, and construction. 22,000,000
Special revenue funds:
Comprehensive transportation fund...................... 1,060,300
Michigan transportation fund........................... 6,304,500
State aeronautics fund................................. 261,900
State trunkline fund................................... 6,054,200
State general fund/general purpose..................... $ 0
Sec. 109. DESIGN AND ENGINEERING SERVICES
Full-time equated classified positions........ 1,516.4
Engineering services--802.2 FTE positions.............. $ 55,537,900
Program services--703.7 FTE positions.................. 36,996,600
Intelligent transportation systems operations--10.5
FTE positions........................................ 9,977,600
GROSS APPROPRIATION.................................... $ 102,512,100
Appropriated from:
Federal revenues:
DOT-FHWA, highway research, planning, and construction. 15,226,200
Special revenue funds:
Michigan transportation fund........................... 5,331,200
State trunkline fund................................... 81,954,700
State general fund/general purpose..................... $ 0
Sec. 110. HIGHWAY MAINTENANCE
Full-time equated classified positions.......... 825.6
State trunkline operations--825.6 FTE positions........ $ 129,341,200
Contract operations.................................... 145,823,700
GROSS APPROPRIATION ................................... $ 275,164,900
Appropriated from:
Special revenue funds:
State trunkline fund................................... 275,164,900
State general fund/general purpose..................... $ 0
Sec. 111. ROAD AND BRIDGE PROGRAMS
State trunkline federal aid and road and bridge
construction......................................... $ 988,064,200
Local federal aid and road and bridge construction..... 259,689,000
Grants to local programs............................... 33,000,000
Rail grade crossing.................................... 3,000,000
Local bridge fund...................................... 30,455,300
County road commissions................................ 649,447,500
Cities and villages.................................... 362,096,000
GROSS APPROPRIATION.................................... $ 2,325,752,000
Appropriated from:
Federal revenues:
DOT-FHWA, highway research, planning, and construction. 1,014,225,100
Special revenue funds:
Local funds............................................ 30,000,000
Blue Water Bridge fund................................. 3,000,000
Local bridge fund...................................... 30,455,300
Michigan transportation fund........................... 1,047,543,500
State trunkline fund................................... 200,528,100
State general fund/general purpose..................... $ 0
Sec. 112. BLUE WATER BRIDGE
Full-time equated classified positions........... 41.0
Blue water bridge operations--41.0 FTE positions....... $ 11,416,600
GROSS APPROPRIATION.................................... $ 11,416,600
Appropriated from:
Special revenue funds:
Blue Water Bridge fund................................. 11,416,600
State general fund/general purpose..................... $ 0
Sec. 113. TRANSPORTATION ECONOMIC DEVELOPMENT FUND
Forest roads........................................... $ 5,000,000
Rural county urban system.............................. 2,500,000
Target industries/economic redevelopment............... 18,863,400
Urban county congestion................................ 7,681,700
Rural county primary................................... 7,681,700
GROSS APPROPRIATION.................................... $ 41,726,800
Appropriated from:
Special revenue funds:
Economic development fund.............................. 41,726,800
State general fund/general purpose..................... $ 0
Sec. 114. AERONAUTICS SERVICES
Full-time equated classified positions........... 56.0
Aeronautics services--56.0 FTE positions............... $ 6,993,500
Air service program.................................... 700,000
GROSS APPROPRIATION.................................... $ 7,693,500
Appropriated from:
Special revenue funds:
State aeronautics fund................................. 7,693,500
State general fund/general purpose..................... $ 0
Sec. 115. PUBLIC TRANSPORTATION AND FREIGHT
SERVICES
Full-time equated classified positions........... 74.0
Public transportation and freight services--74.0 FTE...
positions........................................... $ 8,490,000
GROSS APPROPRIATION.................................... $ 8,490,000
Appropriated from:
Federal revenues:
DOT, federal transit act............................... 787,800
Special revenue funds:
Comprehensive transportation fund...................... 5,707,100
Michigan transportation fund........................... 1,995,100
State general fund/general purpose..................... $ 0
Sec. 116. BUS TRANSIT OPERATING ASSISTANCE
Local bus operating.................................... $ 166,624,000
Nonurban operating/capital............................. 18,000,000
GROSS APPROPRIATION.................................... $ 184,624,000
Appropriated from:
Federal revenues:
DOT, federal transit act............................... 16,000,000
Special revenue funds:
Local funds............................................ 2,000,000
Comprehensive transportation fund...................... 166,624,000
State general fund/general purpose..................... $ 0
Sec. 117. INTERCITY PASSENGER AND FREIGHT
Freight property management............................ $ 1,000,000
Detroit/Wayne County port authority.................... 500,000
Intercity bus equipment................................ 2,800,000
Rail passenger service................................. 8,200,000
Freight preservation and development................... 5,192,900
Rail infrastructure loan program....................... 1,100,000
Intercity bus service development...................... 4,850,000
Marine passenger services.............................. 400,000
Terminal development................................... 1,751,300
GROSS APPROPRIATION.................................... $ 25,794,200
Appropriated from:
Federal revenues:
DOT, federal transit act............................... 3,500,000
DOT-FRA, local rail service assistance................. 100,000
DOT-FRA, rail passenger/HSGT........................... 1,000,000
Special revenue funds:
Local funds............................................ 50,000
Comprehensive transportation fund...................... 18,144,200
Intercity bus equipment fund........................... 1,000,000
Rail preservation fund................................. 2,000,000
State general fund/general purpose..................... $ 0
Sec. 118. PUBLIC TRANSPORTATION DEVELOPMENT
Specialized services................................... $ 11,300,100
Municipal credit program............................... 2,000,000
Bus capital............................................ 64,726,500
Van pooling............................................ 195,000
Service initiatives.................................... 1,200,000
Transportation to work................................. 14,844,000
GROSS APPROPRIATION.................................... $ 94,265,600
Appropriated from:
Federal revenues:
DOT, federal transit act............................... 40,100,000
Special revenue funds:
Local funds............................................ 15,450,000
Comprehensive transportation fund...................... 38,715,600
State general fund/general purpose..................... $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state resources
under part 1 for fiscal year 2006-2007 is $2,225,499,100.00 and
state spending from state resources to be paid to local units of
government for fiscal year 2006-2007 is $1,319,045,600.00. The
itemized statement below identifies appropriations from which
spending to units of local government will occur:
DEPARTMENT OF TRANSPORTATION
Grants to local programs............................... $ 33,000,000
Economic development fund.............................. 37,863,400
Grants to cities and villages.......................... 362,096,000
Grants to county road commissions...................... 649,447,500
Local bridge fund...................................... 30,455,300
Grants to regional planning councils................... 488,800
Local bus operating.................................... 166,624,000
Bus capital............................................ 27,226,500
Marine passenger service............................... 400,000
Detroit/Wayne County port authority.................... 500,000
Municipal credit program............................... 2,000,000
Specialized services................................... 4,100,100
Transportation to work................................. 4,844,000
Total payments to local units of government............ $ 1,319,045,600
Sec. 202. The appropriations authorized under this bill are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this bill:
(a) "CTF" means comprehensive transportation fund.
(b) "Department" means the 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) "MTF" means Michigan transportation fund.
(j) "RIF" means recreation improvement fund.
(k) "SAF" means state aeronautics fund.
(l) "STF" means state trunkline fund.
Sec. 204. The department of civil service shall bill the
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. (1) 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 1 position
to another within a department.
(2) The state budget director may 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, cause loss of revenue to the
state, result in the inability of the state to receive federal
funds, or necessitate additional expenditures that exceed any
savings from maintaining a vacancy. The state budget director
shall report quarterly to the chairpersons of the senate and house
of representatives standing committees on appropriations the number
of exceptions to the hiring freeze approved during the previous
quarter and the reasons to justify the exception.
Sec. 206. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $100,000,000.00 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 $10,000,000.00 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.
Sec. 208. Unless otherwise specified, the department shall use
the Internet to fulfill the reporting requirements of this bill.
This requirement may include transmission of reports via electronic
mail to the recipients identified for each reporting requirement or
it may include placement of reports on an Internet or Intranet
site.
Sec. 209. Funds appropriated in part 1 shall not be used for
the purchase of foreign goods or services, or both, if
competitively priced and of comparable quality American goods or
services, or both, are available. Preference should be given to
goods or services, or both, manufactured or provided by Michigan
businesses if they are competitively priced and of comparable
quality.
Sec. 210. The director shall take all reasonable steps to
ensure businesses in deprived and depressed communities compete for
and perform contracts to provide services or supplies, or both.
The director shall strongly encourage firms with which the
department contracts to subcontract with certified businesses in
deprived and depressed communities for services, supplies, or both.
Sec. 258. Amounts appropriated in part 1 for information
technology may be designated as work projects and carried forward
to support technology projects under the direction of the
department of information technology. Funds designated in this
manner are not available for expenditure until approved as work
projects under section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a.
Sec. 259. From the funds appropriated in part 1 for
information technology, the department shall pay user fees to the
department of information technology for technology-related
services and projects. Such user fees shall be subject to
provisions of an interagency agreement between the department and
the department of information technology.
Sec. 260. (1) Due to the current budgetary problems in this
state, out-of-state travel for the fiscal year ending September 30,
2007 shall be limited to situations in which 1 or more of the
following conditions apply:
(a) The travel is required by legal mandate or court order or
for law enforcement purposes.
(b) The travel is necessary to protect the health or safety of
Michigan citizens or visitors or to assist other states in similar
circumstances.
(c) The travel is necessary to produce budgetary savings or to
increase state revenues, including protecting existing federal
funds or securing additional federal funds.
(d) The travel is necessary to comply with federal
requirements.
(e) The travel is necessary to secure specialized training for
staff that is not available within this state.
(f) The travel is financed entirely by federal or nonstate
funds.
(2) If out-of-state travel is necessary but does not meet 1 or
more of the conditions in subsection (1), the state budget director
may grant an exception to allow the travel. Any exceptions granted
by the state budget director shall be reported on a monthly basis
to the senate and house of representatives standing committees on
appropriations.
(3) Not later than January 1 of each year, each department
shall prepare a travel report listing all travel by classified and
unclassified employees outside this state in the immediately
preceding fiscal year that was funded in whole or in part with
funds appropriated in the department's budget. The report shall be
submitted to the chairs and members of the senate and house of
representatives standing committees on appropriations, the fiscal
agencies, and the state budget director. The report shall include
the following information:
(a) The name of each person receiving reimbursement for travel
outside this state or whose travel costs were paid by this state.
(b) The destination of each travel occurrence.
(c) The dates of each travel occurrence.
(d) A brief statement of the reason for each travel
occurrence.
(e) The transportation and related costs of each travel
occurrence, including the proportion funded with state general
fund/general purpose revenues, the proportion funded with state
restricted revenues, the proportion funded with federal revenues,
and the proportion funded with other revenues.
(f) A total of all out-of-state travel funded for the
immediately preceding fiscal year.
DEPARTMENTAL SECTIONS
Sec. 301. (1) 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. All permit
fees are nonrefundable application fees and shall be credited to
the state trunkline fund to recover the direct and indirect costs
of receiving, reviewing, and processing the requests.
(2) A bridge authority shall hold 3 public hearings on an
increase 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.
Public hearings held under this section shall be conducted in
accordance with the open meetings act, 1976 PA 267, MCL 15.261 to
15.275, and shall be conducted so as to provide a reasonable
opportunity for public comment, including both spoken and written
comments.
Sec. 304. 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. 305. The department may permit space on state-owned
public passenger transportation properties to be occupied by public
or private tenants on a competitive market rate basis. The
department shall require that revenue from the tenants be placed in
an account to be used to pay the costs to maintain and improve the
property. Funds in excess of those needed to maintain the property
shall be deposited into the appropriate fund.
Sec. 306. Biennially, in each odd numbered fiscal year, the
auditor general shall conduct an audit of charges to transportation
funds by state departments for the 2 preceding fiscal years. The
auditor general shall prepare a detailed report, with
recommendations and conclusions, including a list of services
charged to transportation funds, the appropriateness of those
charges, the cost allocation methodologies used in determining the
level of funding, and any unreimbursed costs. The report shall be
provided, upon request, to any member of the senate and house of
representatives, senate and house fiscal agencies, and the state
budget director 6 months after publication of the state of Michigan
comprehensive annual financial report.
Sec. 307. Before February 1 of each year, the department will
provide to the legislature, the state budget office, and the house
and senate fiscal agencies its rolling 5-year plan listing by
county or by county road commission all highway construction
projects for the fiscal year and all expected projects for the
ensuing fiscal years.
Sec. 308. The department and local road agencies that receive
appropriations under this bill shall pursue compliance with
contract specifications for construction and maintenance of state
highways and local roads and streets. Work shall not be accepted
and paid for until it complies with contract requirements.
Contractors with unsatisfactory performance ratings shall be
restricted from future bidding through the prequalification process
established by the department or a local road agency. The
department, county road commissions, and cities and villages shall
report to the house of representatives and senate appropriations
subcommittees on transportation, the senate and house fiscal
agencies, and the state budget director on their respective
activities under this section.
Sec. 309. The department shall continue its efforts to reduce
administrative costs and provide the maximum funding possible for
construction projects.
Sec. 310. The department shall provide in a timely manner
copies of the agenda and approved minutes of monthly transportation
commission meetings to the members of the house and senate
appropriations subcommittees on transportation, the house and
senate fiscal agencies, and the state budget director.
Sec. 311. 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 construction program.
Sec. 312. At the close of the fiscal year, any unencumbered
and unexpended balance in the state trunkline fund shall remain in
the state trunkline fund and shall carry forward and is
appropriated for federal aid road and bridge programs for projects
contained in the annual state transportation program.
Sec. 313. (1) From funds appropriated in part 1, the
department may increase a 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
and interest earned on that money 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 unencumbered funds remaining in the state infrastructure
bank fund shall remain in the fund and be carried forward into the
succeeding fiscal year.
Sec. 324. From the funds appropriated in part 1, up to
$500,000.00 from the state trunkline fund shall be used for
enhanced construction zone traffic law enforcement and the "give
'em a brake" campaign. The funding shall be used to reimburse law
enforcement agencies for costs associated with construction zone
traffic enforcement. The funding shall be provided based on
approved memoranda of understanding between the department and
participating law enforcement agencies.
Sec. 334. The department shall continue its program to
increase the use of women- and minority-owned businesses in state
and local road construction projects. This program shall comprise,
at a minimum, outreach and education efforts to inform women- and
minority-owned firms of department competitive bidding processes
and requirements, and an assessment of the availability of surety
for women- and minority-owned businesses.
Sec. 375. The department is prohibited from reimbursing
contractors or consultants for costs associated with groundbreaking
ceremonies, receptions, open houses, or press conferences related
to transportation projects funded, in whole or in part, by revenue
appropriated in part 1.
FEDERAL
Sec. 401. Within 30 days of receiving the applicable fiscal
year authorization from the federal government to commit
transportation funds, the department shall notify local agency
representatives, the senate and house of representatives
appropriations transportation subcommittees, the senate and house
fiscal agencies, and the state budget director regarding the amount
of federal aid for categorical allocations to state and local
agency programs not specifically allocated in either federal or
state law.
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 labor and economic growth 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. (1) The funds appropriated in part 1 for the
economic development and local bridge 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, and section 10(5) of 1951 PA 51, MCL
247.660.
(2) Interest earned in the department of transportation
economic development fund and local bridge fund shall remain in the
respective funds 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
and local bridge 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 respective funds in addition to funds appropriated in part 1.
(4) None of the funds statutorily dedicated to the
transportation economic development fund and local bridge fund
shall be diverted to other projects.
Sec. 504. (1) Funds from the Michigan transportation fund
(MTF) shall be distributed to the comprehensive transportation fund
(CTF), the economic development fund (EDF), the recreation
improvement fund (RIF), and the state trunkline fund (STF), in
accordance with this bill and part 711 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 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 interdepartment and statutory grants in 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
funds. 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.
(c) Detailed cost allocation methods that are appropriate to
the type of services being provided and the activities financed
with transportation funds.
(3) Two months after publication of the state of Michigan
comprehensive annual financial report, each state agency receiving
an interdepartment and statutory contract from the department shall
submit a written report to the department, the state budget
director, and the house and senate fiscal agencies stating by
spending authorization account the amount of estimated funds
contracted with the department, the amount of funds expended, the
amount of funds returned to the transportation funds, and any
unreimbursed transportation-related costs incurred but not billed
to 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.
STATE TRUNKLINE FUND
Sec. 601. The department shall work with the road construction
industry and engineering consulting community to develop
performance and road construction warranties for construction
contracts. The development of warranties shall include warranties
on materials, workmanship, performance criteria, and design/build
projects.
Sec. 602. If the department uses manufactured pipe for road
construction drainage, the department shall require that pipe used
under certain load-bearing conditions beneath the roadway meets the
standards established by the American society for testing and
materials (ASTM) or American association of state highway and
transportation officials (AASHTO). The department may also use the
mandrel test for manufactured pipe 60 days after installation and
provide a summary of the results of these inspections to the house
of representatives and senate appropriations subcommittees on
transportation and house and senate fiscal agencies, and the state
budget director.
COMPREHENSIVE TRANSPORTATION FUND
Sec. 701. Money that is received by the state as a lease
payment for state-owned 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 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. At the close of the fiscal
year, any funds remaining in the intercity bus equipment fund shall
remain in the fund and be carried forward into the succeeding
fiscal year.
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. At the close of the fiscal
year, any funds remaining in the rail preservation fund shall
remain in the fund and be carried forward into the succeeding
fiscal year.
Sec. 706. The Detroit/Wayne County port authority shall issue
a complete operations assessment and a financial disclosure
statement. The operations assessment shall include operational
goals for the next 5 years and recommendations to improve land
acquisition and development efficiency. The report shall be
completed and submitted to the house of representatives and senate
appropriations subcommittees on transportation, the state budget
director, and the house and senate fiscal agencies by February 15
of each fiscal year for the prior fiscal year.
Sec. 707. For the fiscal year ending September 30, 2007, 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 USC 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 5307 of title 49 of the United States
Code, 49 USC 5307, shall receive a grant of up to 50% of its
eligible operating expenses.
Sec. 708. If funds appropriated in part 1 are used to provide
state-owned or state-leased buses to private intercity bus
carriers, the department shall charge not less than $1,000.00 per
bus per year for their use.
Sec. 711. (1) From the funds appropriated in part 1 from the
comprehensive transportation fund for rail passenger service, the
department shall negotiate with a rail carrier to provide rail
service between Grand Rapids and Chicago and between Port Huron and
Chicago on a 7-day basis, consistent with the other provisions of
this section.
(2) Any state subsidy for rail passenger service between Grand
Rapids and Chicago and between Port Huron and Chicago shall be
limited to fifty percent of the portion of the cost not eligible
for reimbursement by the federal government and shall not exceed
$7,100,000.00.
(3) No state subsidy shall be provided from the funds
appropriated in part 1 if the chosen rail carrier is Amtrak and
Amtrak discontinued service or any portion of the service between
Port Huron and Chicago or Grand Rapids and Chicago during the
preceding fiscal year, unless the discontinuance of service was for
track maintenance or was caused by acts of God.
Sec. 714. The department, in cooperation with local transit
agencies, shall work to ensure that demand-response services are
provided throughout Michigan. The department shall continue to work
with local units of government to address the unmet transit needs
in Michigan.
Sec. 721. For federal transit administration bus acquisition
capital grants matched with CTF funds appropriated in part 1,
transit agencies shall have 4 years from the federal approval date
to carry out their projects. Contract line items unobligated 4
years after the federal approval date may be matched with CTF funds
only up to 15% in the fifth and subsequent years. "Unobligated"
means any line item in the contract that is not committed to a
third party or purchase order. A waiver shall be granted by the
department for an additional year with documented justification
from the transit agency accompanied by a resolution from the board
or authority seeking a waiver. If a transit agency does not carry
out a line item activity in a specific authorization and the
transit agency requests funds in a new authorization for that same
activity, the line item shall be matched at up to 15%. This
section applies only to bus acquisition capital grants. Lapsed
funds under this section shall remain in the CTF.
AERONAUTICS FUND
Sec. 801. At the close of the fiscal year, 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.
Sec. 805. State aeronautics funds appropriated in part 1 for
airport safety and protection plan debt service are transferred to
the comprehensive transportation fund and are appropriated for the
purpose of reimbursing comprehensive transportation fund debt
service obligations for the airport safety and protection plan
program.