SB-0148, As Passed Senate, May 4, 2017
SUBSTITUTE FOR
SENATE BILL NO. 148
A bill to make appropriations for the state transportation
department for the fiscal year ending September 30, 2018; and to
provide for the expenditure of the appropriations.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the state transportation
department for the fiscal year ending September 30, 2018, from the
following funds:
STATE TRANSPORTATION DEPARTMENT
APPROPRIATION SUMMARY
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions........ 2,912.3
GROSS APPROPRIATION.................................... $ 4,347,443,000
Total interdepartmental grants and intradepartmental
transfers............................................ 4,039,300
ADJUSTED GROSS APPROPRIATION........................... $ 4,343,403,700
Federal revenues:
Federal aid - transportation programs.................. 1,340,301,200
Total federal revenues................................. 1,340,301,200
Special revenue funds:
Local revenues......................................... 50,532,000
Private revenues....................................... 100,000
Total local and private revenues....................... 50,632,000
Blue Water Bridge fund................................. 23,432,600
Comprehensive transportation fund...................... 335,482,700
Economic development fund.............................. 54,085,000
IRS debt service rebate................................ 7,004,300
Intercity bus equipment fund........................... 100,000
Local bridge fund...................................... 30,598,300
Michigan transportation fund........................... 1,470,983,700
Qualified airport fund................................. 6,500,000
Rail freight fund...................................... 6,000,000
State aeronautics fund................................. 16,418,600
State trunkline fund................................... 1,001,865,300
Total other state restricted revenues.................. 2,952,470,500
State general fund/general purpose..................... $ 0
Sec. 102. DEBT SERVICE
State trunkline........................................ $ 185,109,100
Economic development................................... 11,548,300
Local bridge fund...................................... 2,315,400
Blue Water Bridge fund................................. 7,105,100
Airport safety and protection plan..................... 4,617,000
Comprehensive transportation........................... 18,244,500
GROSS APPROPRIATION.................................... $ 228,939,400
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 37,783,300
Special revenue funds:
Blue Water Bridge fund................................. 7,105,100
Comprehensive transportation fund...................... 18,244,500
Economic development fund.............................. 11,548,300
Local bridge fund...................................... 2,315,400
IRS debt service rebate................................ 7,004,300
State aeronautics fund................................. 4,617,000
State trunkline fund................................... 140,321,500
State general fund/general purpose..................... $ 0
Sec. 103. COLLECTION, ENFORCEMENT, AND OTHER AGENCY
SUPPORT SERVICES
MTF grant to department of environmental quality....... $ 1,345,900
MTF grant to department of state for collection of
revenue and fees..................................... 20,000,000
MTF grant to department of treasury.................... 2,701,700
MTF grant to legislative auditor general............... 315,800
STF grant to department of attorney general............ 2,447,600
STF grant to civil service commission.................. 5,847,000
STF grant to department of technology, management,
and budget........................................... 1,199,300
STF grant to department of state police................ 11,697,900
STF grant to department of treasury.................... 169,800
STF grant to legislative auditor general............... 733,500
SAF grant to department of attorney general............ 179,400
SAF grant to civil service commission.................. 150,000
SAF grant to department of technology, management,
and budget........................................... 34,600
SAF grant to department of treasury.................... 73,400
SAF grant to legislative auditor general............... 30,300
CTF grant to department of attorney general............ 205,000
CTF grant to civil service commission.................. 200,000
CTF grant to department of technology, management,
and budget........................................... 45,500
CTF grant to department of treasury.................... 12,700
CTF grant to legislative auditor general............... 39,000
GROSS APPROPRIATION.................................... $ 47,428,400
Appropriated from:
Special revenue funds:
Comprehensive transportation fund...................... 502,200
Michigan transportation fund........................... 24,363,400
State aeronautics fund................................. 467,700
State trunkline fund................................... 22,095,100
State general fund/general purpose..................... $ 0
Sec. 104. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions............... $ 269.3
Senate Bill No. 148 as amended May 3, 2017
Unclassified salaries--6.0 FTE positions............. 776,600
Property management.................................... 7,103,500
Worker's compensation.................................. 1,619,000
Asset management council............................... 1,876,400
Business support services--44.0 FTE positions.......... 6,805,600
Commission audit--29.3 FTE positions................... 3,367,500
Economic development and enhancement programs--10.0
FTE positions........................................ 1,643,500
Finance, contracts, and support services--186.0 FTE
positions............................................ 21,993,200
GROSS APPROPRIATION.................................... $ 45,185,300
Appropriated from:
Interdepartmental grant revenues:
IDG for accounting service center user charges......... 4,039,300
Special revenue funds:
Comprehensive transportation fund...................... 1,551,300
Economic development fund.............................. 380,400
Michigan transportation fund........................... 4,217,100
State aeronautics fund................................. 702,400
State trunkline fund................................... 34,294,800
State general fund/general purpose..................... $ 0
Sec. 105. INFORMATION TECHNOLOGY
Information technology services and projects.......... $ << 33,465,800>>
GROSS APPROPRIATION.................................... $ <<33,465,800>>
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 520,500
Senate Bill No. 148 as amended May 3, 2017
Special revenue funds:
Blue Water Bridge fund................................. 55,300
Comprehensive transportation fund...................... 225,100
Economic development fund.............................. 37,200
Michigan transportation fund........................... 294,300
State aeronautics fund................................. 175,600
State trunkline fund................................... <<32,157,800>>
State general fund/general purpose..................... $ 0
Sec. 106. TRANSPORTATION PLANNING
Full-time equated classified positions.......... 140.0
Transportation planning--140.0 FTE positions........... $ 38,560,200
Grants to regional planning councils................... 488,800
GROSS APPROPRIATION.................................... $ 39,049,000
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 19,250,000
Special revenue funds:
Comprehensive transportation fund...................... 610,500
Michigan transportation fund........................... 9,580,800
State aeronautics fund................................. 15,000
State trunkline fund................................... 9,592,700
State general fund/general purpose..................... $ 0
Sec. 107. DESIGN AND ENGINEERING SERVICES
Full-time equated classified positions........ 1,540.3
Program development, delivery, and system
operations--1,540.3 FTE positions.................... $ 167,288,100
GROSS APPROPRIATION.................................... $ 167,288,100
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 23,529,800
Special revenue funds:
Comprehensive transportation fund...................... 187,100
Michigan transportation fund........................... 12,281,400
State aeronautics fund................................. 160,300
State trunkline fund................................... 131,129,500
State general fund/general purpose..................... $ 0
Sec. 108. HIGHWAY MAINTENANCE
Full-time equated classified positions.......... 793.7
State trunkline operations--793.7 FTE positions........ $ 317,593,400
GROSS APPROPRIATION.................................... $ 317,593,400
Appropriated from:
Special revenue funds:
State trunkline fund................................... 317,593,400
State general fund/general purpose..................... $ 0
Sec. 109. ROAD AND BRIDGE PROGRAMS
State trunkline federal aid and road and bridge
construction......................................... $ 1,131,621,800
Local federal aid and road and bridge construction..... 278,400,300
Grants to local programs............................... 33,000,000
Rail grade crossing - surface improvements............. 3,000,000
Rail grade crossing.................................... 3,000,000
Local bridge program................................... 28,282,900
County road commissioners.............................. 880,938,200
Cities and villages.................................... 491,162,500
Local agency wetland mitigation bank fund.............. 2,000,000
Movable bridge fund.................................... 5,110,000
GROSS APPROPRIATION.................................... $ 2,856,515,700
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 1,061,767,600
Special revenue funds:
Local funds............................................ 30,003,500
Blue Water Bridge fund................................. 9,800,800
Local bridge fund...................................... 28,282,900
Michigan transportation fund........................... 1,418,210,700
State trunkline fund................................... 308,450,200
State general fund/general purpose..................... $ 0
Sec. 110. BLUE WATER BRIDGE
Full-time equated classified positions........... 41.0
Blue Water Bridge operations--41.0 FTE positions....... $ 6,471,400
GROSS APPROPRIATION.................................... $ 6,471,400
Appropriated from:
Special revenue funds:
Blue Water Bridge fund................................. 6,471,400
State general fund/general purpose..................... $ 0
Sec. 111. TRANSPORTATION ECONOMIC DEVELOPMENT
Forest roads........................................... $ 5,000,000
Rural county urban system.............................. 2,500,000
Target industries/economic development................. 19,059,500
Urban county congestion................................ 7,779,800
Rural county primary................................... 7,779,800
GROSS APPROPRIATION.................................... $ 42,119,100
Appropriated from:
Special revenue funds:
Economic development fund.............................. 42,119,100
State general fund/general purpose..................... $ 0
Sec. 112. AERONAUTICS SERVICES
Full-time equated classified positions........... 53.0
Aviation services--53.0 FTE positions.................. $ 7,596,100
Air service program.................................... 250,000
GROSS APPROPRIATION.................................... $ 7,846,100
Appropriated from:
State aeronautics fund................................. 7,846,100
State general fund/general purpose..................... $ 0
Sec. 113. PUBLIC TRANSPORTATION SERVICES
Full-time equated classified positions........... 36.0
Passenger transportation services--36.0 FTE positions.. $ 5,789,100
GROSS APPROPRIATION.................................... $ 5,789,100
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 972,100
Special revenue funds:
Comprehensive transportation fund...................... 4,817,000
State general fund/general purpose..................... $ 0
Sec. 114. LOCAL BUS TRANSIT
Local bus operating.................................... $ 187,250,000
Nonurban operating/capital............................. 28,027,900
GROSS APPROPRIATION.................................... $ 215,277,900
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 26,027,900
Special revenue funds:
Comprehensive transportation fund...................... 187,250,000
Local funds............................................ 2,000,000
State general fund/general purpose..................... $ 0
Sec. 115. INTERCITY PASSENGER
Full-time equated classified positions........... 39.0
Office of rail--39.0 FTE positions..................... $ 6,483,400
Freight property management............................ 1,000,000
Detroit/Wayne County port authority.................... 468,200
Intercity services..................................... 8,060,000
Rail operations and infrastructure..................... 125,491,500
Marine passenger service............................... 400,000
GROSS APPROPRIATION.................................... $ 141,903,100
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 64,600,000
Special revenue funds:
Local funds............................................ 260,000
Private funds.......................................... 100,000
Comprehensive transportation fund...................... 68,078,400
Intercity bus equipment fund........................... 100,000
Rail freight fund...................................... 6,000,000
Michigan transportation fund........................... 2,036,000
State trunkline fund................................... 728,700
State general fund/general purpose..................... $ 0
Sec. 116. PUBLIC TRANSPORTATION DEVELOPMENT
Specialized services................................... $ 17,938,900
Municipal credit program............................... 2,000,000
Transit capital........................................ 59,403,500
Van pooling............................................ 195,000
Service initiatives.................................... 3,389,200
Transportation to work................................. 3,700,000
GROSS APPROPRIATION.................................... $ 86,626,600
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 26,850,000
Special revenue funds:
Local funds............................................ 5,760,000
Comprehensive transportation fund...................... 54,016,600
State general fund/general purpose..................... $ 0
Sec. 117. CAPITAL OUTLAY
(1) BUILDINGS AND FACILITIES
Salt storage buildings and containment control......... $ 2,500,000
Special maintenance, remodeling, and additions......... 3,001,500
GROSS APPROPRIATION.................................... $ 5,501,500
Appropriated from:
Special revenue funds:
State trunkline fund................................... 5,501,500
State general fund/general purpose..................... $ 0
(2) AIRPORT IMPROVEMENT PROGRAMS
Airport safety, protection, and improvement program.... $ 93,943,000
Senate Bill No. 148 as amended May 3, 2017
Detroit Metropolitan Wayne County airport.............. 6,500,000
GROSS APPROPRIATION.................................... $ 100,443,000
Appropriated from:
Federal revenues:
Federal aid - transportation programs.................. 79,000,000
Special revenue funds:
Local funds............................................ 12,508,500
State aeronautics fund................................. 2,434,500
Qualified airport fund................................. 6,500,000
State general fund/general purpose..................... $ 0
Sec. 118. ONE-TIME BASIS ONLY
<<Gogebic County repair project........................ $100>>
GROSS APPROPRIATION.................................... $ <<100>>
Appropriated from:
<<State trunkline fund................................. 100>>
State general fund/general purpose..................... $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2017-2018
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 2017-2018 is $2,952,470,500.00 and
state spending from state resources to be paid to local units of
government for fiscal year 2017-2018 is <<$1,716,980,400.00>>. The
itemized statement below identifies appropriations from which
spending to local units of government will occur:
Senate Bill No. 148 as amended May 4, 2017
STATE TRANSPORTATION DEPARTMENT
Rail grade crossing - surface improvements............. $ 3,000,000
Urban county congestion................................ 7,779,800
Local bridge program................................... 28,282,900
Service initiatives.................................... 1,283,200
Transit capital........................................ 42,853,500
Rural county primary................................... 7,779,800
Cities and villages.................................... 491,162,500
Grants to local programs............................... 33,000,000
Local bus operating.................................... 187,250,000
Detroit/Wayne County Port Authority.................... 468,200
Airport safety, protection, and improvement program.... 2,434,500
Forest roads........................................... 5,000,000
Grants to regional planning councils................... 488,800
Movable Bridge......................................... 2,555,000
Air service program.................................... 250,000
Local agency wetlands mitigation....................... 2,000,000
Rail grade crossing.................................... 1,500,000
Transportation to work................................. 3,700,000
Marine passenger service............................... 400,000
Municipal credit program............................... 2,000,000
Rural county urban system.............................. 2,500,000
Specialized services................................... 3,853,900
Detroit Metropolitan Wayne County Airport.............. 6,500,000
County road commissions................................ 880,938,200
<<Gogebic County repair project......................... 100>>
TOTAL.................................................. $ <<1,716,980,400>>
Sec. 202. The appropriations authorized under this part and
part 1 are subject to the management and budget act, 1984 PA 431,
MCL 18.1101 to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "CTF" means comprehensive transportation fund.
(b) "Department" means the state transportation department.
(c) "Director" means the director of the department.
(d) "DOT" means the United States Department of
Transportation.
(e) "DOT-FHWA" means DOT, Federal Highway Administration.
(f) "FTE" means full-time equated.
(g) "IDG" means interdepartmental grant.
(h) "MTF" means Michigan transportation fund.
(i) "SAF" means state aeronautics fund.
(j) "STF" means state trunkline fund.
Sec. 204. The departments and agencies receiving
appropriations in part 1 shall use the internet to fulfill the
reporting requirements of this part. 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. 205. 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 shall be given to
goods or services, or both, manufactured or provided by Michigan
businesses, if they are competitively priced and of comparable
quality. In addition, preference shall be given to goods or
services, or both, that are manufactured or provided by Michigan
businesses owned and operated by veterans, if they are
competitively priced and of comparable quality.
Sec. 206. 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.
Each director shall strongly encourage firms with which the
department contracts to subcontract with certified businesses in
depressed and deprived communities for services, supplies, or both.
Sec. 207. The departments and agencies receiving
appropriations in part 1 shall prepare a report on out-of-state
travel expenses not later than January 1 of each year. The travel
report shall be a listing of 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 senate and house appropriations committees, the
house and senate fiscal agencies, and the state budget director.
The report shall include the following information:
(a) The dates of each travel occurrence.
(b) 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.
Sec. 208. Funds appropriated in part 1 shall not be used by a
principal executive department, state agency, or authority to hire
a person to provide legal services that are the responsibility of
the attorney general. This prohibition does not apply to legal
services for bonding activities and for those activities that the
attorney general authorizes.
Sec. 209. Not later than November 30, the state budget office
shall prepare and transmit a report that provides for estimates of
the total general fund/general purpose appropriation lapses at the
close of the prior fiscal year. This report shall summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The report
shall be transmitted to the chairpersons of the senate and house of
representatives standing committees on appropriations and the
senate and house fiscal agencies.
Sec. 210. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $200,000,000.00 for
federal contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in part 1 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 part 1 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 part 1
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 part 1
pursuant to section 393(2) of the management and budget act, 1984
PA 431, MCL 18.1393.
Sec. 211. The department shall cooperate with the department
of technology, management, and budget to maintain a searchable
website accessible by the public at no cost that includes, but is
not limited to, all of the following:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(d) The number of active department employees by job
classification.
(e) Job specifications and wage rates.
Sec. 212. Within 14 days after the release of the executive
budget recommendation, the department shall cooperate with the
state budget office to provide the senate and house appropriations
chairs, the senate and house appropriations subcommittees chairs,
and the senate and house fiscal agencies with an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
fiscal years ending September 30, 2017 and September 30, 2018.
Sec. 213. The department shall maintain, on a publicly
accessible website, a department scorecard that identifies, tracks,
and regularly updates key metrics that are used to monitor and
improve the agency's performance.
Sec. 214. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2018 are $63,943,300.00. From this amount, total agency
appropriations for pension-related legacy costs are estimated at
$32,905,600.00. Total agency appropriations for retiree health care
legacy costs are estimated at $31,037,700.00.
Sec. 215. A department shall not take disciplinary action
against an employee for communicating with a member of the
legislature or his or her staff.
Sec. 217. The department shall provide notice to the speaker
of the house, the house minority leader, the senate majority
leader, the senate minority leader, the house and senate standing
committees on transportation, the appropriate house and senate
appropriations subcommittees on transportation, and the house and
senate fiscal agencies on proposed federal rule changes related to
the department that would require amendments to the laws of this
state. The notice shall be given within 30 business days of the
proposed federal rule being posted to the federal register and
shall include a description of the proposed federal rule, the
publication date, the date when public comment closes, the document
citation, and a description of the statutory changes needed when
the rule is finalized.
Sec. 270. In order to reduce costs and maintain quality, it is
the intent of the legislature that, excluding the fleet of motor
vehicles for the department of state police, the department will
prioritize the utilization of remanufactured parts as the primary
means of maintenance and repair for the state of Michigan's fleet
of motor vehicles.
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,
unless otherwise stipulated by law. All permit fees are
nonrefundable application fees and shall be credited to the
appropriate 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. 302. From the funds appropriated in part 1, the
department shall conduct a pilot program to cycle test concrete
pavement segments treated with a cement hydration catalyst and
sealant. The test shall simulate a longer design life on simulated
state trunkline roads. The department shall, in accordance with
1951 PA 51 and the department's new materials evaluation program,
conduct a cement hydration catalyst and sealant pilot program of
sufficient length of reconstructed or newly constructed state
trunkline, and test the quality and durability of the road
segments. Upon completing the testing, the department shall issue a
report to the legislature on or before September 30, 2018 on the
relative durability and quality of the treated pavement segments.
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. (1) 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
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.
(2) The department shall charge public transit agencies and
intercity bus carriers equal rates per square foot for leasing
space in state-owned intermodal facilities.
Sec. 306. (1) The amounts appropriated in part 1 to support
tax and fee collection, law enforcement, and other program services
provided to the department and to transportation funds by other
state departments shall be expended from transportation funds
pursuant to annual contracts between the department and those other
state departments. The contracts shall be executed prior to the
expenditure or obligation of those funds. The contracts shall
provide, but are not limited to, the following data applicable to
each state department:
(a) Estimated costs to be recovered from transportation funds.
(b) Description of services provided to the department and/or
transportation funds and financed with transportation funds.
(c) Detailed cost allocation methods appropriate to the type
of services being provided and the activities financed with
transportation funds.
(2) Not later than 2 months after publication of the state of
Michigan comprehensive annual financial report, each state
department receiving funding pursuant to an interdepartment
contract with 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.
(3) The auditor general shall use a risk-based approach in
developing an audit program for the use of transportation funds.
Sec. 307. Before March 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. 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. 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.
(3) The department shall submit a report to the state budget
director, the house and senate appropriations subcommittees on
transportation, and the house and senate fiscal agencies on the
status of the state infrastructure bank. The report shall be
submitted on or before December 1, 2017. The report shall include
all of the following:
(a) The balance in the state infrastructure bank at September
30, 2017, including a breakdown of the balance by cash and cash
equivalents, outstanding loans, and balance available for loan to
local agencies.
(b) A breakdown of the state infrastructure loan balance by
amounts designated as originating from federal sources and the
amounts originating from nonfederal sources.
(c) A list of outstanding loans by agency, original loan
amount, project description, loan term, and amount outstanding.
Sec. 319. The department shall post signs at each rest area to
identify the agency or contractor responsible for maintenance of
the rest area. The signs shall include a department telephone
number and shall indicate that unsafe or unclean conditions at the
rest area may be reported to that telephone number.
Sec. 353. The department shall review its contractor payment
process and ensure that all prime contractors are paid promptly.
The department shall ensure that prime contractors are in
compliance with special provision 109.10 regarding the prompt
payment of subcontractors.
Sec. 357. When presented with complete local federal aid
project submittals, the department shall complete all necessary
reviews and inspections required to let local federal aid projects
within 120 days of receipt. The department shall implement a system
for monitoring the local federal aid project review process.
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.
Sec. 376. The department shall not spend funds appropriated in
part 1 for the purpose of examining the potential association
between commercial signs, outdoor advertising signs, billboards,
digital billboards, or commercial electronic variable message signs
and motor vehicle activity or motor vehicle driver behavior.
Sec. 381. The department shall require as a condition of each
contract or subcontract for construction, maintenance, or
engineering services that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States. The department may verify this
information directly or may require contractors and subcontractors
to verify the information and submit a certification to the
department. The department shall report to the house and senate
appropriations committees and the house and senate fiscal agencies
by March 1 of each year describing the processes it has developed
and implemented under provisions of this section. As used in this
section, "E-Verify" means an Internet-based system operated by the
Department of Homeland Security, U.S. Citizenship and Immigration
Services in partnership with the Social Security Administration.
Sec. 382. In administering a contract with a county road
commission, city, or village that allocates costs of construction
or reconstruction of highways, roads, and streets as provided in
section 18d of 1951 PA 51, MCL 247.668d, the department shall
submit the final cost-sharing bill to the county road commission,
city, or village not later than 2 years after the date of the final
contract payment to the construction contractor.
Sec. 383. (1) The department shall prepare a report on use of
department-owned aircraft during the fiscal year ending September
30, 2017. With respect to each department-owned aircraft, the
report shall include all of the following:
(a) Total hours of usage.
(b) Description of specific flights including dates of travel,
names of passengers including state agency, university, or local
government affiliation, travel origin and destination, and total
estimated costs associated with the air travel.
(2) The report shall be submitted to the senate and house
appropriations subcommittees on transportation and the house and
senate fiscal agencies no later than February 1, 2018.
(3) The department shall maintain a system for recovering the
cost of operating department-owned aircraft through charges to
aircraft users.
(4) From the funds appropriated in part 1, the department is
prohibited from transporting legislators or legislative staff on
state-owned aircraft without prior approval from the senate
majority leader or the speaker of the house of representatives and
only when the aircraft is already scheduled by state agencies on
related official state business.
Sec. 384. (1) Except as otherwise provided in subsection (2),
the department shall not obligate the state to expend any state
transportation revenue for construction planning or construction of
the Detroit River International Crossing or a renamed successor. In
addition, except as provided in subsection (2), the department
shall not commit the state to any new contract related to the
construction planning or construction of the Detroit River
International Crossing or a renamed successor that would obligate
the state to expend any state transportation revenue. An
expenditure for staff resources used in connection with project
activities, which expenditure is subject to full and prompt
reimbursement from Canada, shall not be considered an expenditure
of state transportation revenue.
(2) If the legislature enacts specific enabling legislation
for the construction of the Detroit River International Crossing or
a renamed successor, subsection (1) does not apply once the
enabling legislation goes into effect.
Sec. 385. (1) The department shall submit reports to the state
budget director, the speaker of the house, the house minority
leader, the senate majority leader, the senate minority leader, the
house and senate appropriations subcommittees on transportation,
and the house and senate fiscal agencies on department activities
related to all nonconstruction or construction planning activities
related to the Detroit River International Crossing or a renamed
successor. The initial report shall be submitted on or before
December 1, 2017 and shall cover the fiscal year ending September
30, 2017.
(2) The initial report shall include, at a minimum, all of the
following:
(a) Department costs incurred in the fiscal year ending
September 30, 2017, including employee salaries, wages, benefits,
travel, and contractual services, and what activities those costs
were related to.
(b) Costs of other executive branch agencies incurred in the
fiscal year ending September 30, 2017, including employee salaries,
wages, benefits, travel, and contractual services, and what
activities those costs were related to.
(c) A breakdown of the source of funds used for the activities
described in subdivisions (a) and (b).
(d) A breakdown of reimbursements made by Canada under section
384(1) to the state for expenditures for staff resources used in
connection with project activities.
(e) A narrative description of the status of the Detroit River
International Crossing or a renamed successor, including efforts
undertaken to implement provisions of the crossing agreement
executed June 15, 2012 by representatives of the Canadian
government and this state.
(3) After submission of the initial report, a subsequent
report shall be submitted on March 1, 2018, June 1, 2018, and
September 1, 2018 and shall include the same information described
in subsection (2) for the applicable previous fiscal quarter.
Sec. 386. The department shall use available toll credits, as
provided by private toll facilities in this state and certified by
the Federal Highway Administration, to secure federal funds to
fulfill expenses for limited access highway repairs and
reconstruction projects exceeding $250,000.00 assessed to cities
prior to December 31, 2016 while in receivership under 2012 PA 436
and that did not receive approval from the transition advisory
board to enter into the project agreement provided by the
department.
Sec. 393. (1) The department shall promote best practices for
public transportation services in this state, including, but not
limited to, the following:
(a) Transit vehicle rehabilitation to reduce life-cycle cost
of public transportation through midlife rehabilitation of transit
buses.
(b) Cooperation between entities using transit, including
school districts, cities, townships, and counties with a view to
promoting cost savings through joint purchasing of fuel and other
procurements.
(c) Coordination of transportation dollars among state
departments which provide transit-related services, including the
department of health and human services. Priority should be given
to use of public transportation services where available.
(d) Promotion of intelligent transportation services for buses
that incorporate computer and navigation technology to make transit
systems more efficient, including stoplight coordinating, vehicle
tracking, data tracking, and computerized scheduling.
Sec. 394. The department and local road agencies shall make
the preservation of their existing road networks a funding
priority.
Sec. 395. (1) From the funds appropriated in part 1 for state
trunkline federal aid road and bridge construction, the department
may expend up to $6,900,000.00 on highway maintenance activities to
support safety-related, high-priority, and other deferred routine
maintenance needs on Michigan's state trunkline network.
(2) From the funds appropriated in part 1 for state trunkline
federal aid road and bridge construction, the department shall
spend no less than $3,100,000.00 to establish a grant program to
assist small villages with resurfacing costs. The program shall be
managed by the asset management council, which may deduct
administrative costs from the program not to exceed $100,000.00.
The asset management council shall provide grants equal to 75% of
individual project costs to villages with a population of 2,000 or
less for resurfacing projects located within the jurisdiction of
those villages. The grants may not exceed $250,000.00. When
awarding grants, the asset management council shall prioritize
project applications with the greatest return on total
infrastructure value.
Sec. 396. In soliciting proposals for contractual services,
other than construction contracts, the department shall obtain
assurance that the respondents have the financial capability,
equipment, work force, and prior work experience sufficient to
perform the proposed services.
Sec. 397. The department shall report annually to the house
and senate appropriations subcommittees and the house and senate
fiscal agencies all work project balances and all federal earmarks
not expended for the preceding fiscal year. The initial report
shall be submitted on or before February 1, 2018.
Sec. 398. The department shall continue to work to eliminate
fatalities and serious injuries on Michigan's trunkline and shall
maintain the Toward Zero Deaths (TZD) statewide safety campaign.
The department shall prioritize additional median cable guardrail
installation when appropriate to address trunkline locations with a
history of correctable fatal and serious injury crashes.
FEDERAL
Sec. 402. A portion of the federal DOT-FHWA highway research,
planning, and construction funds made available to this state shall
be allocated to transportation programs administered by local
jurisdictions in accordance with section 10o of 1951 PA 51, MCL
247.660o. A local road agency, with respect to a project approved
for federal aid funding in a state transportation improvement
program, may enter into a voluntary buyout agreement with the
department or with another local road agency to exchange the
federal aid with state restricted transportation funds as agreed to
by the respective parties. The state restricted transportation
funds received in exchange for federal aid funds shall be used for
the same purpose as the federal aid funds were originally intended.
Sec. 403. After funding capital needs of existing 5310 program
recipients, the department shall fund replacement buses for rural
public transit systems that are indirect recipients under the 5310
program. Funding shall be prioritized by the percentage of senior
and disabled passengers of each rural public transit system until
funding is maximized.
MICHIGAN TRANSPORTATION FUND
Sec. 501. The money received under the motor carrier act, 1933
PA 254, MCL 475.1 to 479.42, and not appropriated to the department
of licensing and regulatory affairs or the department of state
police is deposited in the Michigan transportation fund.
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) In addition to the funds appropriated in part 1, the
department of transportation economic development fund and local
bridge fund may receive federal, local, or private funds or
restricted source funds such as interest earnings. These funds are
appropriated for projects that are consistent with the purposes of
the respective funds.
(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. Funds from the Michigan transportation fund shall be
distributed to the comprehensive transportation fund, the economic
development fund, the recreation improvement fund, and the state
trunkline fund, in accordance with this part and part 1 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 part and part 1, 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.
STATE TRUNKLINE FUND
Sec. 601. (1) The department shall work with the road
construction industry and engineering consulting community to
develop a warranty program for capital road and bridge
construction, reconstruction, and rehabilitation projects. In
developing the warranty program, the department shall consider all
of the following:
(a) Scope of warranties, including warranties on materials and
workmanship, pavement or bridge performance criteria, and the
application of warranties to design/build projects.
(b) Length of warranty.
(c) Costs and benefits associated with scope of warranty and
various warranty provisions, including length of warranty.
(d) Any other relevant factors that might determine the use of
warranties, scope of warranty, or length of warranty.
(e) Use of warranties on local agency projects administered by
the department.
(f) Other measures used to identify premature failure of road
pavement or bridge elements and the related cause of those
failures.
(2) The department shall report on March 1 of each year to the
house of representatives and senate appropriations subcommittees on
transportation and the house and senate fiscal agencies on
provisions of the department's warrant program described under
subsection (1). The department shall timely inspect warrantied
projects prior to the expiration of any associated warranty.
(3) The department shall report to the legislature all of the
following with regard to road and bridge construction projects:
(a) An update on procedures involving the attorney general's
office regarding nonresponsive contractors that had received notice
but failed to fulfill the terms of a warranty.
(b) An update on any upgrades and improvements to the
statewide warranty administrative database.
(c) The number of active road and bridge construction
warranties.
(d) The number of road and bridge project warranties that
required corrective action, and the date or dates of any corrective
action.
(e) The number of warrantied projects that required corrective
action but expired prior to the contractor receiving notice and the
total cost of each of those projects.
(f) The number of instances where a contractor was notified of
the need for corrective action more than 60 days after the
associated warranty period.
(g) The number of unresolved corrective actions outstanding
beyond 15 months, and the department's findings and any changes to
existing policies and procedures as required in subsection (5).
(4) The report required under subsection (3) is due on March 1
of each calendar year, shall reflect the prior 12-month period, and
shall be transmitted to the house of representatives and senate
appropriations subcommittees on transportation, the state budget
director, and the house and senate fiscal agencies.
(5) The department shall maintain documentation to support
initial acceptance of warrantied projects, interim and final
inspections, and notifications to contractors that the warranty
period had expired. The department also shall review and evaluate
consultant evaluation requirements or recommendations and update
existing policies and procedures accordingly.
Sec. 604. 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. 605. (1) From the increased funds appropriated in part 1
for highway maintenance, the department shall expand highway
maintenance activities in the current fiscal year to support
flooding mitigation-related activities on limited access state
trunklines in Wayne, Oakland, and Macomb Counties, as well as other
safety-related, high-priority, and deferred routine maintenance
needs on Michigan's state trunkline network.
(2) The department shall identify specific outcomes and
performance measures, including, but not limited to, the following:
(a) Number of drainage catch basins cleaned on limited-access
state trunklines in Wayne, Oakland, and Macomb Counties during the
fiscal year ending September 30, 2018.
(b) Number of flooding-related closures on limited-access
state trunklines in Wayne, Oakland, and Macomb Counties during the
fiscal year ending September 30, 2018.
Sec. 606. From the funds appropriated in part 1 for highway
maintenance, the department shall expend $5,000,000.00 for the
engineering and design of a rebuilding and modernization project on
I-94 between M-60 and Sargent Road in Jackson County. The
engineering and design work shall prepare the project for the
receipt of any future federal funds, if and when they become
available.
Sec. 610. The department shall have as a priority the removal
of dead deer and other large animal remains from the traveled
portion and shoulder of state highways. The department, and
counties that perform state highway maintenance under contract,
shall remove animal remains, wherever practicable and when funds
are available, away from the traveled portion and shoulder of state
highways.
Sec. 612. The department shall establish guidelines governing
incentives and disincentives provided under contracts for state
trunkline projects. The guidelines shall include specific financial
information concerning incentives and disincentives. On or before
January 1 of each year, the department shall prepare a report for
the immediately preceding fiscal year regarding contract incentives
and disincentives. This report shall include a list, by project, of
the contractors that received contract incentives and/or
disincentives, the amount of the incentives and/or disincentives,
the fund source of any incentives, and the number of days that each
project was completed either ahead or past the contracted
completion date. This report shall be provided to the senate and
house appropriations subcommittees on transportation, the senate
and house standing committees on transportation, and the senate and
house fiscal agencies.
Sec. 670. (1) The department shall investigate, by way of bid
solicitation and all other practical means, the complete
refurbishment of all department winter maintenance trucks scheduled
for sale or retirement in the fiscal year ending September 30,
2018.
(2) On or before November 1, 2018, the department shall submit
to the house of representatives and senate appropriations
subcommittees and the house and senate fiscal agencies a final
report. The final report must include an analysis illustrating the
costs and benefits of the complete refurbishment of winter
maintenance trucks compared to the sale and purchase of new
equipment.
TRANSIT AND RAIL RELATED FUNDS
Sec. 701. The department shall establish an intercity bus
equipment and facility fund as a subsidiary fund within the
comprehensive transportation fund created under section 10b of 1951
PA 51, MCL 247.660b. Proceeds received by this state from the sale
of state-owned intercity bus equipment shall be credited to the
intercity bus equipment and facility fund for the purchase and
repair of intercity bus equipment, as appropriated. Security
deposits not returned to a lessee of state-owned intercity bus
equipment under terms of the lease agreement shall be credited to
the intercity bus equipment and facility fund for the repair of
intercity bus equipment, as appropriated. Money received by the
department from lease payments for state-owned intercity bus
equipment, and facility maintenance charges under terms of leases
of state-owned intercity facilities, shall be credited to the
intercity bus equipment and facility fund for the purchase and
repair of intercity bus equipment or for the maintenance and
rehabilitation of state-owned intercity facilities, as
appropriated. At the close of the fiscal year, any funds remaining
in the intercity bus equipment and facility fund shall remain in
the fund and be carried forward into the succeeding fiscal year.
Sec. 702. Money that is received by this 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
rail freight 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 freight fund shall
remain in the fund and be carried forward into the succeeding
fiscal year.
Sec. 703. After receiving notification from a railroad company
pursuant to section 8 of the state transportation preservation act
of 1976, 1976 PA 295, MCL 474.58, the department shall immediately
notify the house of representatives and senate appropriations
subcommittees on transportation and the state budget office that
the railroad company has filed with the appropriate governmental
agencies for abandonment of a line.
Sec. 704. From the funds appropriated in part 1, the
department shall prepare and transmit a report that provides detail
regarding the department's obligations for programs funded under
the appropriation in part 1 for rail operations and infrastructure.
The report shall include a breakdown of the appropriation by
program, year-to-date obligations under each program itemized by
project, and an estimate of future obligations under each program
itemized by project for the remainder of the fiscal year. The
initial report shall be submitted to the senate and house
appropriations subcommittees on transportation, the state budget
director, and the senate and house fiscal agencies, on or before
February 1, 2018. The department also shall update and resubmit the
final report on or before November 1, 2018. The department also
shall update and resubmit the final report for the 2016-2017 fiscal
year on or before November 1, 2017.
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 June 30 of
each fiscal year for the prior fiscal year.
Sec. 711. (1) As prescribed in subsection (2), the department
shall submit reports to the state budget director, the house and
senate appropriations subcommittees on transportation, and the
house and senate fiscal agencies on rail passenger service provided
by Amtrak under a contractual agreement with the department. The
report shall be submitted on or before May 1 of each year.
(2) The report shall include all of the following:
(a) Passenger counts for the preceding fiscal year for each
Amtrak service route in Michigan.
(b) Revenue and operating expenses by Amtrak route.
(c) Total state operating payments to Amtrak in the preceding
fiscal year by Amtrak route.
(d) A discussion of major factors affecting route costs and
revenue and net state costs in the preceding fiscal year, and
factors affecting route costs and revenue and net state costs
anticipated in the current and future fiscal years.
Sec. 735. For the fiscal year ending September 30, 2018, the
appropriation to a street railway pursuant to section 10e(22) of
1951 PA 51, MCL 247.660e, is $0.
Sec. 750. From the funds appropriated in part 1 for rail
operations and infrastructure, the department must expend at least
$2,500,000.00 on freight economic development.
AERONAUTICS FUND
Sec. 801. Except as otherwise provided in section 903 for
capital outlay, 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. 803. Not later than November 1, 2017, the department, in
cooperation with the department of technology, management, and
budget, shall release a request for proposal seeking competitive
bids for the award of a contract for third party management and
sale of the department's aging aircraft. Third party management
shall include, but not be limited to: aircraft transportation
services, aircraft, aircraft personnel including pilots and
technicians, aircraft maintenance, aircraft facilities, and
aircraft fuel.
CAPITAL OUTLAY
Sec. 901. (1) From federal-state-local project appropriations
contained in part 1 for the purpose of assisting political entities
and subdivisions of this state in the construction and improvement
of publicly used airports and landing fields within this state, the
state transportation department may permit the award of contracts
on behalf of units of local government for the authorized locations
not to exceed the indicated amounts, of which the state allocated
portion shall not exceed the amount appropriated in part 1.
(2) Political entities and subdivisions shall provide not less
than 5% of the cost of any project under this section, unless a
total nonfederal share greater than 10% is otherwise specified in
federal law. State money shall not be allocated until local money
is allocated. State money for any 1 project shall not exceed 1/3 of
the total appropriation in part 1 from state funds for airport
improvement programs.
(3) The Michigan aeronautics commission may take those steps
necessary to match federal money available for airport construction
and improvement within this state and to meet the matching
requirements of the federal government. Whether acting alone or
jointly with another political subdivision or public agency or with
this state, a political subdivision or public agency of this state
shall not submit to any agency of the federal government a project
application for airport planning or development unless it is
authorized in this part and part 1 and the project application is
approved by the governing body of each political subdivision or
public agency making the application and by the Michigan
aeronautics commission.
Sec. 903. The appropriations in part 1 for capital outlay
shall be carried forward at the end of the fiscal year consistent
with the provisions of section 248 of the management and budget
act, 1984 PA 431, MCL 18.1248.