Bill Text: MI HB5306 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Transportation; funds; comprehensive transportation fund; revise criteria for funding and make miscellaneous changes. Amends secs. 10b, 10c, 10e & 10h of 1951 PA 51 (MCL 247.660b et seq.) & repeals secs. 10d & 10l of 1951 PA 51 (MCL 247.660d & 247.660l).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-31 - Printed Bill Filed 01/27/2012 [HB5306 Detail]

Download: Michigan-2011-HB5306-Introduced.html

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HOUSE BILL No. 5306

 

January 26, 2012, Introduced by Rep. Daley and referred to the Committee on Transportation.

 

     A bill to amend 1951 PA 51, entitled

 

"An act to provide for the classification of all public roads,

streets, and highways in this state, and for the revision of that

classification and for additions to and deletions from each

classification; to set up and establish the Michigan transportation

fund; to provide for the deposits in the Michigan transportation

fund of specific taxes on motor vehicles and motor vehicle fuels;

to provide for the allocation of funds from the Michigan

transportation fund and the use and administration of the fund for

transportation purposes; to promote safe and efficient travel for

motor vehicle drivers, bicyclists, pedestrians, and other legal

users of roads, streets, and highways; to set up and establish the

truck safety fund; to provide for the allocation of funds from the

truck safety fund and administration of the fund for truck safety

purposes; to set up and establish the Michigan truck safety

commission; to establish certain standards for road contracts for

certain businesses; to provide for the continuing review of

transportation needs within the state; to authorize the state

transportation commission, counties, cities, and villages to borrow

money, issue bonds, and make pledges of funds for transportation

purposes; to authorize counties to advance funds for the payment of

deficiencies necessary for the payment of bonds issued under this

act; to provide for the limitations, payment, retirement, and

security of the bonds and pledges; to provide for appropriations

and tax levies by counties and townships for county roads; to

authorize contributions by townships for county roads; to provide

for the establishment and administration of the state trunk line

fund, local bridge fund, comprehensive transportation fund, and

certain other funds; to provide for the deposits in the state trunk

line fund, critical bridge fund, comprehensive transportation fund,

and certain other funds of money raised by specific taxes and fees;

to provide for definitions of public transportation functions and

criteria; to define the purposes for which Michigan transportation

funds may be allocated; to provide for Michigan transportation fund

grants; to provide for review and approval of transportation

programs; to provide for submission of annual legislative requests

and reports; to provide for the establishment and functions of

certain advisory entities; to provide for conditions for grants; to

provide for the issuance of bonds and notes for transportation

purposes; to provide for the powers and duties of certain state and

local agencies and officials; to provide for the making of loans

for transportation purposes by the state transportation department

and for the receipt and repayment by local units and agencies of

those loans from certain specified sources; and to repeal acts and

parts of acts,"

 

by amending sections 10b, 10c, 10e, and 10h (MCL 247.660b,

 

247.660c, 247.660e, and 247.660h), section 10b as amended by 1982

 

PA 438, section 10c as amended by 2010 PA 257, section 10e as

 

amended by 2008 PA 487, and section 10h as amended by 2002 PA 498;

 

and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 10b. (1) A fund to be known as the comprehensive

 

transportation fund is established and shall be set up and

 

maintained in the state treasury as a separate fund. In addition to

 

the money distributed to the comprehensive transportation fund

 

pursuant to this act, the money authorized to be credited to the

 

comprehensive transportation fund pursuant to section 25 of the

 

general sales tax act, Act No. 167 of the Public Acts of 1933, as

 

amended, being section 205.75 of the Michigan Compiled Laws, 1933

 

PA 167, MCL 205.75, shall be deposited in the comprehensive

 

transportation fund and is appropriated to the state transportation

 

department for the purposes described in section 10e.

 

     (2) The comprehensive transportation fund shall be

 

administered by the state transportation department in accordance

 

with this act.

 

     (3) The general functions of the state transportation

 

department in the administration of funds for comprehensive

 

transportation services shall include the following:

 

     (a) Establishing public transportation procedures and

 

administrative practices for which there is a clear requirement for

 

uniformity statewide.

 

     (b) Planning and providing for the current and long-range

 

development of a system of public transportation in coordination

 

with areas for which there is an eligible authority or eligible

 

governmental agency. does not exist.

 

     (c) Investigating public transportation conditions and making

 

recommendations for improvement to the state transportation

 

commission for forwarding to the legislature.

 

     (d) Encouraging, coordinating, and administering grants for

 

research and demonstration projects to develop the application of

 

new ideas and concepts in public transportation facilities and

 

services as applied to state as opposed to nationwide problems.

 

     (e) Performing each function necessary to comply fully with

 

present or future federal transportation acts.

 

     (f) Administering and distributing money from the

 

comprehensive transportation fund and the proceeds of notes and

 

bonds sold for public transportation purposes. If money is raised

 

by an eligible authority or an eligible governmental agency for a

 

public transportation capital outlay project funded pursuant to

 

sections 3, 5, and 6 of the urban mass transportation act of 1964,

 

49 U.S.C. 1602, 1604, and 1605, or federal law codified in 23

 

U.S.C. 101 to 407, the state shall pay not less than 66-2/3% of the

 

local match. The state shall not expend money as a local match or

 

otherwise, and an eligible authority or eligible governmental

 

agency shall not expend money distributed pursuant to this act, as

 

a local match or otherwise, for the preliminary or final

 

construction engineering plans or the construction of a subway

 

system within the area of the southeastern Michigan transportation

 

authority until that expenditure is approved by concurrent

 

resolution of the legislature. The concurrent resolution shall be

 

approved on a record roll call vote of each house. The state shall

 

not expend money for the construction, operation, or maintenance of

 

a commuter boat service system within a county which is a member of

 

the southeastern Michigan transportation authority until approved

 

by concurrent resolution of the legislature. The concurrent

 

resolution shall be approved on a record roll call vote of each

 

house.

 

     (g) Applying for, receiving, and accepting any grant, gift,

 

contribution, loan, or other assistance in the form of money,

 

property, labor, and or any other form from a public or private

 

source, including assistance from an agency or instrumentality of

 

the United States and doing each thing as is necessary to apply

 

for, receive, and administer that assistance in accordance with the

 

laws of this state.

 

     (h) Promulgating rules for the implementation and

 

administration of the comprehensive transportation fund, pursuant

 

to the administrative procedures act of 1969, Act No. 306 of the

 

Public Acts of 1969, as amended, being sections 1969 PA 306, MCL

 

24.201 to 24.315 of the Michigan Compiled Laws.24.328.

 

     (i) Issuing bonds or notes for public transportation purposes

 

in accordance with this act.

 

     (j) Making direct expenditures, loans, grants, or guaranteeing

 

lease costs to public and private corporations for public

 

transportation purposes using the comprehensive transportation fund

 

or using as appropriate, the proceeds of notes and bonds authorized

 

by section 18b.

 

     Sec. 10c. As used in this act:

 

     (a) "Urban or rural area" means a contiguous developed area,

 

including the immediate surrounding area, where transportation

 

services should reasonably be provided presently or in the future;

 

the area within the jurisdiction of an eligible authority; or for

 

the purpose of receiving funds for public transportation, a

 

contiguous developed area having a population of less than 50,000

 

that has an urban public transportation program approved by the

 

state transportation department and for which the state

 

transportation commission determines that public transportation

 

services should reasonably be provided presently or in the future.

 

     (b) "Eligible authority or agency" means an authority a

 

county, city, or village, or an authority created or organized

 

under the metropolitan transportation authorities act of 1967, 1967

 

PA 204, MCL 124.401 to 124.426; .

 

     (c) "Eligible governmental agency" means a county, city, or

 

village or an authority created under 1963 PA 55, MCL 124.351 to

 

124.359; the urban cooperation act of 1967, 1967 (Ex Sess) PA 7,

 

MCL 124.501 to 124.512; 1967 (Ex Sess) PA 8, MCL 124.531 to

 

124.536; 1951 PA 35, MCL 124.1 to 124.13; the public transportation

 

authority act, 1986 PA 196, MCL 124.451 to 124.479; or the revenue

 

bond act of 1933, 1933 PA 94, MCL 141.101 to 141.140, or a regional

 

transit authority created under state law enacted after October 1,

 

2011.

 

     (c) (d) "Transit vehicle" means a bus, rapid transit vehicle,

 

railroad car, street railway car, water vehicle, taxicab, or other

 

type of public transportation vehicle or individual unit, whether

 

operated singly or in a group which provides public transportation.

 

     (d) (e) "Transit vehicle mile" means a transit vehicle

 

operated for 1 mile in public transportation service including

 

demand actuated and line-haul vehicle miles.

 

     (e) (f) "Demand actuated vehicle" means a bus or smaller

 

transit vehicle operated for providing group rides to members of

 

the general public paying fares individually, and on demand rather

 

than in regularly scheduled route service.

 

     (f) (g) "Demand actuated vehicle mile" means a demand actuated

 

vehicle operated for 1 mile in service to the general public.

 

     (g) (h) "Public transportation", "comprehensive

 

transportation", "public transportation service", "comprehensive

 

transportation service", "public transportation purpose", or

 

"comprehensive transportation purpose" means the movement of people

 

and goods by publicly or privately owned water vehicle, bus,

 

railroad car, street railway, aircraft, rapid transit vehicle,

 

taxicab, or other conveyance which provides general or special

 

service to the public, but not including charter or sightseeing

 

service or transportation which is exclusively for school purposes.

 

Public transportation, public transportation services, or public

 

transportation purposes; and comprehensive transportation,

 

comprehensive transportation services, or comprehensive

 

transportation purposes as defined in this subdivision are declared

 

by law to be transportation purposes within the meaning of section

 

9 of article IX of the state constitution of 1963.

 

     (h) (i) "State transportation commission" means the state

 

transportation commission established in section 28 of article V of

 

the state constitution of 1963.

 

     (i) (j) "Governmental unit" means the state transportation

 

department, the state transportation commission, a county road

 

commission, a city, or a village.

 

     (j) (k) "Department" or "department of transportation" means

 

the state transportation department, the principal department of

 

state government created under section 350 of the executive

 

organization act of 1965, 1965 PA 380, MCL 16.450.

 

     (k) (l) "Preservation" means an activity undertaken to preserve

 

the integrity of the existing roadway system. Preservation does not

 

include new construction of highways, roads, streets, or bridges, a

 

project that increases the capacity of a highway facility to

 

accommodate that part of traffic having neither an origin nor

 

destination within the local area, widening of a lane width or

 

more, or adding turn lanes of more than 1/2 mile in length.

 

Preservation includes, but is not limited to, 1 or more of the

 

following:

 

     (i) Maintenance.

 

     (ii) Capital preventive treatments.

 

     (iii) Safety projects.

 

     (iv) Reconstruction.

 

     (v) Resurfacing.

 

     (vi) Restoration.

 

     (vii) Rehabilitation.

 

     (viii) Widening of less than the width of 1 lane.

 

     (ix) Adding auxiliary weaving, climbing, or speed change lanes.

 

     (x) Modernizing intersections.

 

     (xi) Adding auxiliary turning lanes of 1/2 mile or less.

 

     (xii) Installing traffic signs in new locations, installing

 

signal devices in new locations, and replacing existing signal

 

devices.

 

     (l) (m) "Maintenance" means routine maintenance or preventive

 

maintenance, or both. Maintenance does not include capital

 

preventive treatments, resurfacing, reconstruction, restoration,

 

rehabilitation, safety projects, widening of less than 1 lane

 

width, adding auxiliary turn lanes of 1/2 mile or less, adding

 

auxiliary weaving, climbing, or speed-change lanes, modernizing

 

intersections, or the upgrading of aggregate surface roads to hard

 

surface roads. Maintenance of state trunk line highways does not

 

include streetlighting except for freeway lighting for traffic

 

safety purposes.

 

     (m) (n) "Routine maintenance" means actions performed on a

 

regular or controllable basis or in response to uncontrollable

 

events upon a highway, road, street, or bridge. Routine maintenance

 

includes, but is not limited to, 1 or more of the following:

 

     (i) Snow and ice removal.

 

     (ii) Pothole patching.

 

     (iii) Unplugging drain facilities.

 

     (iv) Replacing damaged sign and pavement markings.

 

     (v) Replacing damaged guardrails.

 

     (vi) Repairing storm damage.

 

     (vii) Repair or operation of traffic signs and signal systems.

 

     (viii) Emergency environmental cleanup.

 

     (ix) Emergency repairs.

 

     (x) Emergency management of road closures that result from

 

uncontrollable events.

 

     (xi) Cleaning streets and associated drainage.

 

     (xii) Mowing roadside.

 

     (xiii) Control of roadside brush and vegetation.

 

     (xiv) Cleaning roadside.

 

     (xv) Repairing lighting.

 

     (xvi) Grading.

 

     (n) (o) "Preventive maintenance" means a planned strategy of

 

cost-effective treatments to an existing roadway system and its

 

appurtenances that preserve assets by retarding deterioration and

 

maintaining functional condition without significantly increasing

 

structural capacity. Preventive maintenance includes, but is not

 

limited to, 1 or more of the following:

 

     (i) Pavement crack sealing.

 

     (ii) Micro surfacing.

 

     (iii) Chip sealing.

 

     (iv) Concrete joint resealing.

 

     (v) Concrete joint repair.

 

     (vi) Filling shallow pavement cracks.

 

     (vii) Patching concrete.

 

     (viii) Shoulder resurfacing.

 

     (ix) Concrete diamond grinding.

 

     (x) Dowel bar retrofit.

 

     (xi) Bituminous overlays of 1-1/2 inches or less in thickness.

 

     (xii) Restoration of drainage.

 

     (xiii) Bridge crack sealing.

 

     (xiv) Bridge joint repair.

 

     (xv) Bridge seismic retrofit.

 

     (xvi) Bridge scour countermeasures.

 

     (xvii) Bridge painting.

 

     (xviii) Pollution prevention.

 

     (xix) New treatments as they may be developed.

 

     (o) (p) "County road commission" means the board of county

 

road commissioners elected or appointed pursuant to section 6 of

 

chapter IV of 1909 PA 283, MCL 224.6, or, in the case of a charter

 

county with a population of 750,000 or more with an elected county

 

executive that does not have a board of county road commissioners,

 

the county executive for ministerial functions and the county

 

commission provided for in section 14(1)(d) of 1966 PA 293, MCL

 

45.514, for legislative functions.

 

     (p) (q) "Capital preventive treatments" means any preventive

 

maintenance category project on state trunk line highways that

 

qualifies under the department's capital preventive maintenance

 

program.

 

     Sec. 10e. (1) The comprehensive transportation fund is

 

appropriated for each fiscal year in the following order of

 

priority.

 

     (2) The first priority is to pay, but only from money

 

restricted as to use by section 9 of article IX of the state

 

constitution of 1963, the principal and interest on bonds or notes

 

issued under section 18b for comprehensive transportation purposes

 

as defined by law. A sufficient portion of the comprehensive

 

transportation fund is irrevocably appropriated to pay, when due,

 

the principal and interest on those bonds and notes.

 

     (3) After making or setting aside payments required by

 

subsection (2), the second priority of the comprehensive

 

transportation fund is the payment of the department's cost in

 

administering the comprehensive transportation fund. The amount to

 

be expended pursuant to this subsection shall not exceed the costs

 

appropriated for the administration of the fund in the fiscal year

 

ending September 30, 1987, as adjusted annually on October 1, by

 

the change for the preceding 12 months in the Detroit consumer

 

price index for urban wage earners and shall be appropriated

 

annually by the legislature.

 

     (4) After making or setting aside payments required by

 

subsections (2) and (3), the balance of the comprehensive

 

transportation fund shall be expended each fiscal year as

 

appropriated annually by the legislature pursuant to the state

 

transportation program approved by the commission as followsthird

 

priority is the statewide operating grants program. The statewide

 

operating grants program is a program of grants to eligible

 

authorities and agencies for local bus services, subject to the

 

following requirements:

 

     (a) The third priority shall be the payment of operating

 

grants to eligible authorities and eligible governmental agencies

 

according to the following formulations and subject to the

 

following requirements:Notwithstanding any other provisions of this

 

act, beginning in the fiscal year that starts at least 12 months

 

after the effective date of the amendatory act that added

 

subsection (8), in order to receive funding under the statewide

 

operating grants program, an eligible authority or agency must be

 

in compliance with subsection (8) as determined by the department.

 

     (b) (i) For the fiscal year ending September 30, 1998, and for

 

each fiscal year thereafter, each Each eligible authority and

 

eligible governmental or agency which that provides public

 

transportation services in urbanized areas under 49 USC 5307, with

 

and that has a Michigan population greater than 100,000 shall

 

receive a grant of up to 50% 37.5% of their its eligible operating

 

expenses as defined by the state transportation department.

 

     (c) (ii) For the fiscal year ending September 30, 1998, and

 

each fiscal year thereafter, each Each eligible authority and

 

eligible governmental or agency which that provides public

 

transportation services in urbanized areas under 49 USC 5307 with a

 

Michigan population less than or equal to 100,000 and nonurbanized

 

areas under 49 USC 5311 , shall receive a grant of up to 60% 45% of

 

their its eligible operating expenses as defined by the state

 

transportation department. For purposes of receiving a grant under

 

this subparagraph subdivision in nonurbanized areas, eligible costs

 

operating expenses of services provided by water vehicle shall be

 

reimbursed at not less than 50% 45% of the portion of the costs not

 

eligible for reimbursement by the federal government.

 

     (d) The department shall exclude all of the following as an

 

eligible operating expense under the statewide operating grants

 

program:

 

     (i) Expenses associated with light rail, rapid bus, intercity

 

bus, intercity passenger rail, commuter rail, and other similar

 

modes of transportation as defined by the department.

 

     (ii) Expenses incurred for new transit services started after

 

October 1, 2011 if those expenses are covered by a local or

 

regional transportation fee collected under state law enacted after

 

October 1, 2011.

 

     (e) (iii) Funds shall not be distributed to an eligible

 

authority or eligible governmental agency under this act unless the

 

eligible authority or eligible governmental agency provides or

 

agrees to provide preferential fares for public transportation

 

services to persons 65 years of age or over or persons with

 

disabilities riding in off peak periods of service. As used in this

 

section, "person with disabilities" means an individual with a

 

disability a handicapped person as that term is defined in 61 FRP

 

56424 (November 1, 1996) and 49 CFR part 27. The preferential fares

 

shall not be higher than 50% of the regular 1-way single fare.

 

     (iv) Eligible authorities and eligible governmental agencies

 

shall not engage in charter service using vehicles, facilities, or

 

equipment funded under this act except on an incidental basis as

 

defined by 49 CFR part 604.

 

     (f) (v) Notwithstanding any other provision of this

 

subsection, for the fiscal year ending September 30, 1998, each

 

eligible authority and eligible governmental agency shall receive a

 

distribution from the comprehensive transportation fund not less

 

than the distribution received for eligible operating expenses for

 

the fiscal year ending September 30, 1997. Beginning with the

 

fiscal year ending September 30, 1998 and each fiscal year

 

thereafter, each Except as provided in subdivision (g), each

 

eligible authority and eligible governmental or agency shall

 

receive a distribution from the comprehensive transportation fund

 

for eligible operating expenses not less than the distribution

 

received for the fiscal year ending September 30, 1997 2011. As it

 

relates to For purposes of this subsection, the ratio between

 

comprehensive transportation funds and local funds in the fiscal

 

year ending September 30, 1989 shall be maintained for all fiscal

 

years by the eligible authority and eligible governmental or

 

agency. Reductions in this ratio shall require a proportionate

 

reduction in the comprehensive transportation funds provided for

 

any fiscal year.

 

     (g) Starting with the fiscal year that begins at least 12

 

months after the date the amendatory act that added this

 

subdivision is enacted, if there is more than 1 eligible authority

 

or agency in a county, the department shall reduce the annual

 

distribution amount for each eligible authority or agency in the

 

county by 10%. A reduction under this subdivision shall be taken

 

after the annual distribution amount has been calculated for the

 

eligible authority or agency under subdivisions (b), (c), and (f),

 

if applicable.

 

     (h) (vi) Each eligible authority and eligible governmental or

 

agency receiving comprehensive transportation funds shall prepare

 

and submit to the department a quarterly report of the progress

 

made in carrying out its local transportation program within 40

 

days after the end of each fiscal year quarter. The progress report

 

shall be made on forms authorized by the United States department

 

of transportation under the provisions of the surface

 

transportation and uniform relocation assistance act of 1987,

 

Public Law 100-17. , 101 Stat. 132.

 

     (i) (vii) The department shall periodically adjust or

 

redistribute comprehensive transportation funds previously

 

distributed under this subdivision.subsection.

 

     (j) The annual appropriation for the statewide operating

 

grants program shall not be less than $166,600,000.00.

 

     (b) For the fiscal year ending September 30, 1997, and each

 

fiscal year thereafter, not less than 10% shall be distributed by

 

the department for intercity passenger and intercity freight

 

transportation purposes.

 

     (c) For the fiscal year ending September 30, 1997, and each

 

fiscal year thereafter, funds remaining in the fund after payment

 

of the amounts required by subdivisions (a) and (b) shall be

 

distributed by the department for public transportation purposes.

 

For the fiscal year ending September 30, 1998, and each fiscal year

 

thereafter, funds shall be made available to match all projects for

 

eligible authorities and eligible governmental agencies that are

 

approved for federal funding as provided by federal law and for

 

which an approved transportation improvement program (TIP) and

 

state transportation improvement plan (STIP) exist. Funds

 

distributed under this subdivision shall be expended pursuant to

 

specific line item appropriation for, but are not limited to, the

 

following public transportation purposes:

 

     (i) The specialized services assistance program. The

 

specialized services assistance program shall be funded with not

 

less than $3,600,100.00 from funds distributed under this

 

subdivision. Funds shall be distributed according to guidelines

 

developed by the department based upon the following

 

considerations:

 

     (A) Proposals for coordinated specialized services assistance

 

funding shall be developed jointly between existing eligible

 

authorities or eligible governmental agencies that provide public

 

transportation services and the area agencies on aging or any other

 

organization representing specialized services interests, as

 

defined in this subdivision. Plans shall be reviewed and approved

 

by the bureau of urban and public transportation of the department.

 

Upon approval, the department shall release the funds to the

 

eligible authority or eligible governmental agency which shall then

 

allocate the funds to the area agency on aging or any other

 

organization representing specialized services interests, as

 

defined in this subdivision for the purchase of services as

 

approved in the plan by the department.

 

     (B) If an eligible authority or eligible governmental agency

 

does not exist to provide public transportation service in a

 

county, coordinated proposals for specialized services assistance

 

funding may be submitted by the area agency on aging or any other

 

organization representing specialized services interests, as

 

defined in this subdivision. The proposals shall be reviewed and

 

approved by the bureau of urban and public transportation of the

 

department. Upon approval, the department shall release the funds

 

to the area agency on aging or any other organization representing

 

specialized services interests, as defined in this subdivision for

 

the purchase of services as approved in the plan by the department.

 

     (C) For the purposes of this program, "specialized services"

 

means public transportation primarily designed for persons with

 

disabilities or persons who are 65 years of age or older.

 

     (ii) Local bus capital. For the fiscal year ending September

 

30, 1998 and each fiscal year thereafter, not less than

 

$8,000,000.00 will be distributed for either matching federal funds

 

for local bus capital or 100% capital projects for eligible

 

authorities and eligible governmental agencies that are not

 

eligible to receive federal capital formula funds under section

 

5307 of the federal intermodal surface transportation efficiency

 

act, Public Law 102-240, or any successor act.

 

     (iii) Local bus new services.

 

     (iv) Not less than $2,000,000.00 in each fiscal year for the

 

credit program established under section 10l.

 

     (v) Public transportation development.

 

     (vi) Other public transportation programs approved by the

 

commission.

 

     (5) After making or setting aside payments under subsections

 

(2) to (4), the comprehensive transportation fund shall be

 

appropriated for each of the following programs:

 

     (a) The intercity rail program, which is a program for

 

maintaining, operating, expanding, and enhancing city-to-city

 

passenger heavy rail services and infrastructure. The amount

 

appropriated for this program each fiscal year shall be sufficient

 

to operate and maintain existing passenger rail services and

 

infrastructure that are in place or under development on October 1,

 

2011 as determined by the department. Funds appropriated for the

 

intercity rail program may be used for grants, loans, loan

 

guarantees, contracts, and direct department expenditures.

 

     (b) The rural intercity bus program, which is a program for

 

maintaining and operating rural intercity bus services and

 

infrastructure. The amount appropriated for this program each

 

fiscal year shall be sufficient to operate and maintain service

 

levels and infrastructure that are in place or under construction

 

on October 1, 2011 as determined by the department. Funds

 

appropriated for the rural intercity bus program may be used for

 

grants, loans, loan guarantees, contracts, and direct department

 

expenditures.

 

     (c) The transit regionalization incentives program, which is a

 

program to provide bonus payments to an eligible authority or

 

agency that receives funding under the statewide operating grants

 

program, if the eligible authority or agency is a regional provider

 

as determined by the department. The department shall do all of the

 

following in making a bonus payment under this subdivision:

 

     (i) Prior to making any bonus payment under the transit

 

regionalization incentives program, publish a definition of the

 

term "regional provider" and written criteria that will be used by

 

the department to determine if an eligible authority or agency

 

meets the definition of a regional provider.

 

     (ii) Prior to making any bonus payment under the transit

 

regionalization incentives program, establish 2 levels of regional

 

providers:

 

     (A) A regional provider consisting of 2 counties.

 

     (B) A regional provider consisting of 3 or more counties.

 

     (iii) For each level of regional provider, the department shall

 

calculate bonus payments annually as follows:

 

     (A) Individual bonus payments to regional providers consisting

 

of 3 or more counties shall be greater than individual bonus

 

payments to regional providers consisting of 2 counties.

 

     (B) Bonus payments shall be calculated based on the amount

 

appropriated for the transit regionalization incentives program and

 

the number of eligible regional providers at each level.

 

     (C) Bonus payments shall be calculated as a percentage of the

 

grant amount a regional provider received under the statewide

 

operating grants program in the most recent fiscal year for which

 

the department has completed an audit-based reconciliation.

 

     (d) The statewide capital match program, which is a program to

 

provide matching funds to federal formula and discretionary grants

 

made to the department and eligible authorities or agencies. Funds

 

appropriated for the statewide capital match program may be used

 

for grants, loans, loan guarantees, contracts, and direct

 

department expenditures. The department shall allocate funds as

 

follows:

 

     (i) In allocating funds under the statewide capital match

 

program, the department shall give priority to providing 100% of

 

the nonfederal match required to secure awards of federal grants

 

made to the department or an eligible authority or agency for the

 

replacement of revenue vehicles that, as determined by the

 

department, are past their useful life and are necessary to

 

maintain the projected level of transit service.

 

     (ii) After meeting the priority in subparagraph (i), the

 

remaining funds appropriated for the statewide capital match

 

program shall be allocated based on annual statewide priorities set

 

by the department for each fiscal year. In establishing annual

 

statewide priorities, the department shall establish categories of

 

capital items and the percentage of match that will be provided for

 

each category of capital items.

 

     (iii) Funds appropriated under the statewide capital match

 

program may be used to match discretionary capital grants only

 

after formula capital grants have been matched. In allocating funds

 

for discretionary capital grants, the department shall give

 

priority to providing 100% of the nonfederal match required to

 

secure awards of federal grants made to the department or an

 

eligible authority or agency for the replacement of revenue

 

vehicles that, as determined by the department, are past their

 

useful life and are necessary to maintain the projected level of

 

transit service.

 

     (iv) The amount appropriated for the statewide capital match

 

program each fiscal year shall be sufficient to secure all federal

 

capital funds that are expected to be awarded for the replacement

 

of revenue vehicles that, as determined by the department, are past

 

their useful life and are necessary to maintain the projected level

 

of transit service.

 

     (e) The urban transit modernization investment program, which

 

is a program of state investment in rapid transit or regional

 

transit within or between urbanized areas. Funds appropriated for

 

the urban transit modernization investment program may be used for

 

grants, loans, loan guarantees, contracts, and direct department

 

expenditures. Projects funded under the urban transit modernization

 

investment program may be for operating, capital, or planning and

 

shall only be for light rail, rapid bus, commuter rail, or similar

 

modes of transportation as determined by the department. In the

 

discretion of the department, funds appropriated for the urban

 

transit modernization investment program may also be used for bus

 

service that directly supports light rail, rapid bus, commuter

 

rail, or similar modes of transportation. The department shall

 

annually publish guidance on the process for submitting an

 

application for a grant under the urban transit modernization

 

investment program. In allocating funds under the urban transit

 

modernization investment program, the department may give

 

preference to any of the following:

 

     (i) Regional providers as defined by the department under

 

subdivision (c).

 

     (ii) Projects that serve this state's largest urbanized areas.

 

     (iii) The use of state funds to match or leverage federal funds.

 

     (iv) The use of state funds to match or leverage new local or

 

regional transportation fees established under state law enacted

 

after October 1, 2011.

 

     (v) A street railway organized under the nonprofit street

 

railway act, 1867 PA 35, MCL 472.1 to 472.27.

 

     (f) The rail freight program, which is a program to support

 

continued rail freight service to business and industries in this

 

state, both through the management of state-owned rail lines and

 

the award of funding assistance for rail infrastructure

 

improvements to railroads or rail users throughout this state.

 

     (g) Other transit programs established by the department or

 

the state transportation commission, which may include, but are not

 

limited to, the following:

 

     (i) A vanpooling program.

 

     (ii) A specialized services program.

 

     (iii) A service initiatives program.

 

     (iv) A marine passenger capital program.

 

     (v) A transportation to work program.

 

     (6) (d) The unappropriated and unencumbered balance of the

 

comprehensive transportation fund lapses at the end of each fiscal

 

year and reverts to the comprehensive transportation fund for

 

appropriation in the following fiscal year.

 

     (7) (5) Eligible authorities and eligible governmental or

 

agencies shall that receive capital grants each fiscal year by the

 

annual process described in this section. Amounts received by an

 

eligible authority or eligible governmental agency pursuant to this

 

subsection shall be expended by that authority or agency under this

 

section shall use funds solely for capital projects which have been

 

approved by the department or the state transportation commission.

 

Any funds approved by distribution to an eligible authority or

 

eligible governmental agency pursuant to this section which have

 

not been encumbered by that agency or authority for an approved

 

capital project by the end of the following fiscal year in which

 

the funds were approved shall not be expended by the authority or

 

agency and be available for distribution from the comprehensive

 

transportation fund for the purposes described in this section.The

 

contractual agreement or standardized grant memorandum between the

 

department and an eligible authority or agency shall include

 

provisions that allow the department to revoke any funds that have

 

not been encumbered by the eligible authority or agency or

 

authority for an approved capital project by the end of fiscal year

 

following the fiscal year during which the funds were approved.

 

     (6) The department, in carrying out the policy of the state

 

transportation commission, shall annually prepare and distribute by

 

December 1, instructions to eligible governmental agencies,

 

eligible authorities, and intercity carriers to enable the

 

preparation of a local transportation program. Eligible

 

governmental agencies, eligible authorities, and intercity carriers

 

shall give public notice of their intent to apply for money in the

 

comprehensive transportation fund to the residents of the counties,

 

townships, villages, and cities affected by the local

 

transportation program and shall make their application available

 

for a period of 30 days. All comments received by the eligible

 

governmental agency, eligible authority, or intercity carrier shall

 

be transmitted to the department.

 

     (7) On or before March 1 of each year, each intercity carrier,

 

eligible authority, and eligible governmental agency shall submit

 

to the department its local transportation program for the next

 

succeeding fiscal year. The format for each local transportation

 

program shall be as prescribed by the federal transportation

 

improvement program insofar as practical and shall include project

 

descriptions, funding sources, and justification for each line

 

item, and summary budgets based on distributions anticipated under

 

subsection (4). The program shall contain at a minimum the

 

contemplated routes, hours of service, estimated transit vehicle

 

miles, costs of public transportation services, and projected

 

capital improvements or projects as exclusively determined by the

 

eligible authority or eligible governmental agency. The costs of

 

service and capital improvements or projects shall be in sufficient

 

detail to permit the state transportation department to evaluate

 

and approve the annual public transportation program. Determination

 

of individual projects to be included in the local transportation

 

programs other than those provided in this subsection shall be made

 

by the governing body of the eligible authority or eligible

 

governmental agency.

 

     (8) On or before March 1 of each year, the department shall

 

prepare and file for public inspection and review the department

 

transportation program. The department transportation program shall

 

be prepared on similar format to the local transportation programs,

 

and shall include a summary description of projects, with funding

 

sources and project justifications for each line item for the

 

fiscal year immediately succeeding the fiscal year in which the

 

program is submitted. In addition, the department transportation

 

program shall include summary, nondetailed budget and project

 

descriptions and justifications excluding projects contained in a

 

local transportation program.

 

     (9) On or before April 1 of each year, the department shall

 

prepare and file with the commission the proposed state

 

transportation program for the next succeeding fiscal year. The

 

proposed state transportation program shall contain the local

 

transportation programs of each intercity carrier, eligible

 

authority and eligible governmental agency, the department

 

transportation program, and the programs for the expenditure of the

 

state trunk line fund as they may have been supplemented, amended,

 

or modified since their original filing. The state transportation

 

program shall include the estimated amount of money in the funds

 

described in this subsection by revenue source, project

 

justifications, project descriptions funding sources, and budget

 

summaries.

 

     (10) On or before May 1 of each year, the state transportation

 

commission shall act on the state transportation program for the

 

fiscal year commencing on the following October 1. In considering

 

approval of the proposed projects of each intercity carrier,

 

eligible authority, or eligible governmental agency, other than

 

projects which are to be funded pursuant to subsection (5), the

 

state transportation commission shall consider whether the projects

 

comply with state law, are within funds allocated in this section,

 

whether they may be funded within the approved budgets, whether

 

there are intercity carriers, eligible authorities, and eligible

 

governmental agencies responsible to implement the projects, and

 

the recommendations of the department on individual projects. Upon

 

making those determinations, the state transportation commission

 

shall approve the projects which best meet the criteria of this

 

subsection.

 

     (8) Notwithstanding any other provisions in this act, starting

 

in the fiscal year that begins at least 12 months after the

 

effective date of the amendatory act that added this subsection, an

 

eligible authority or agency shall submit all of the following

 

written documents as adopted by the eligible authority's or

 

agency's governing board or chief executive officer to the

 

department in order to be eligible to receive a grant under the

 

statewide operating grants program:

 

     (a) An asset management plan for all revenue vehicles and

 

facilities, major facility components, and major pieces of

 

equipment as defined by the department. An eligible authority or

 

agency shall update the asset management plan annually.

 

     (b) The method used by an eligible authority or agency for

 

determining the percentage of operating costs that will be funded

 

with local funds and the percentage that will be funded with fares.

 

An eligible authority or agency shall update this information every

 

3 years.

 

     (c) An assessment conducted by an eligible authority or agency

 

of the need for passenger trips that have a destination that is

 

outside of the eligible authority or agency's service area and in a

 

directly adjacent county and the strategy that the eligible

 

authority or agency will use to coordinate with the transit system

 

in the adjacent county to provide for those passenger trip needs

 

when feasible. The assessment and strategy required by this

 

subdivision shall be updated by an eligible authority or agency

 

every 3 years.

 

     (d) A plan and a commitment to conduct a survey of user

 

satisfaction and a survey of general public satisfaction with the

 

services and performance of an eligible authority or agency once

 

every 3 years. The eligible authority or agency shall provide

 

results for the most recent completed surveys under this

 

subdivision to the department.

 

     (e) Documentation that an eligible authority or agency has

 

created and published a dashboard of its performance that includes,

 

at a minimum, the documents required under subdivisions (a) through

 

(d). The dashboard shall also include annual performance indicators

 

for the eligible authority or agency that have been established by

 

the eligible authority's or agency's governing board or chief

 

executive officer. The dashboard shall be readily available to the

 

public, including, at a minimum, publication on the eligible

 

authority's or agency's website. The eligible authority or agency

 

shall update the dashboard required by this subdivision annually.

 

     (f) The format and content of the documents required in

 

subdivisions (a) to (e) shall conform with standards set by the

 

department.

 

     (g) For each document required in subdivisions (a) to (e), an

 

eligible authority or agency shall provide an opportunity for

 

public review and comment prior to submitting the document to the

 

department for approval.

 

     (h) The department shall withhold funding under the statewide

 

operating grants program for noncompliance with this subsection as

 

follows:

 

     (i) The department shall provide written notice to an eligible

 

authority or agency when the authority or agency is not in

 

compliance with this subsection. The department shall resume

 

payment of funds if compliance is reestablished within 90 days

 

after the date on the written notice.

 

     (ii) If an eligible authority or agency is not in compliance

 

with this subsection for 6 consecutive months, the department shall

 

provide written notice to the eligible authority or agency that it

 

is not eligible to receive funding under the statewide operating

 

grants program for 1 full fiscal year starting in the next

 

succeeding fiscal year after the date of the department's written

 

notice.

 

     (iii) As used in this subdivision, noncompliance is to be

 

determined by the department. Noncompliance includes, but is not

 

limited to, any of the following:

 

     (A) Failure of an eligible authority or agency to submit any

 

of the documents required by subdivisions (a) to (e), including a

 

required update to documents previously submitted under

 

subdivisions (a) to (e), within 30 days after the deadline for

 

submission of documents or updates to documents established by the

 

department.

 

     (B) Failure of an eligible authority or agency to submit a

 

complete document within 30 days after the date of a written notice

 

from the department stating that the document is significantly

 

incomplete as submitted.

 

     (C) Failure of an eligible authority or agency to maintain a

 

document approved by the department on its website.

 

     (9) The department shall not provide a grant under the

 

statewide operating assistance program in subsection (4) or the

 

statewide capital match program in subsection (5)(d) to an eligible

 

authority or agency that was not in existence on October 1, 2011,

 

unless 1 of the following applies:

 

     (a) The eligible authority or agency is a regional transit

 

authority created under state law enacted after October 1, 2011.

 

     (b) The eligible authority or agency provides public

 

transportation service in a county that did not have an eligible

 

authority or agency on October 1, 2011, and the eligible authority

 

or agency provides countywide service.

 

     (c) The eligible authority or agency replaces 1 or more

 

existing eligible authorities or agencies, is the sole recipient of

 

funding under the statewide operating assistance program or the

 

statewide capital match program, and provides countywide public

 

transportation service to 1 or more counties.

 

     (10) Not later than December 1 of each year, the department

 

shall prepare and distribute instructions and forms for preparing a

 

grant application for the statewide operating assistance grant

 

program, the rural intercity bus program, the transit

 

regionalization incentives grant program, the statewide capital

 

match program, and other transit programs.

 

     (11) To apply for a grant under the statewide operating

 

assistance grant program, rural intercity bus program, transit

 

regionalization incentives grant program, or statewide capital

 

match program, an intercity carrier, eligible authority or agency,

 

or other eligible entity shall submit an application for the

 

immediately succeeding fiscal year to the department by March 1. An

 

applicant for a grant under this subsection shall give public

 

notice to the residents of the counties, townships, villages, and

 

cities affected by the application and shall make the application

 

available to those residents for a period of 30 days. All comments

 

received from residents of the counties, townships, villages, and

 

cities affected by the application shall be transmitted by the

 

applicant to the department. An application for a grant under this

 

subsection shall contain at a minimum the contemplated routes,

 

hours of service, estimated transit vehicle miles, costs of public

 

transportation services, and projected capital improvements or

 

projects as determined by the applicant. The costs of service and

 

capital improvements or projects shall be stated in sufficient

 

detail in the application to permit the department to evaluate and

 

approve the application. Determination of the individual projects

 

to be included in an application under this subsection shall be

 

made by the governing body of the applicant.

 

     (12) Notwithstanding subsection (11), the department may

 

accept applications for comprehensive transportation fund

 

assistance and may award grants or contracts with comprehensive

 

transportation funds at any time during a fiscal year.

 

     (13) The department shall recommend an annual appropriation

 

amount for each of the programs mandated by this section upon

 

request of the state budget office. The department's

 

recommendations shall be consistent with the 5-year program of

 

planned investment of comprehensive transportation fund revenues as

 

described in section 10h.

 

     (14) (11) By October 1, the The department and each intercity

 

carrier, eligible authority , or eligible governmental agency, or

 

other eligible entity shall enter into a contractual agreement or

 

standardized grant memorandum of agreement, which may cover 1 or

 

more projects to be made from this section in the applicable fiscal

 

year to the intercity carrier, eligible authority , or eligible

 

governmental agency, or other eligible entity from the

 

comprehensive transportation fund.

 

     (15) (12) After a A multiyear public transportation program is

 

project may be approved by the state transportation commission. ,

 

Upon approval of a multiyear public transportation project, the

 

state transportation department may enter into a grant-in-aid

 

instrument with an eligible authority or agency, intercity carrier,

 

or other eligible governmental agency entity obligating the state

 

to a minimum level of funding for approved projects to be available

 

over the multiyear period of the program. This obligation shall be

 

binding upon the state transportation department as long as the

 

provisions and conditions of the state transportation commission

 

approved program project are carried out as agreed and subject to

 

the annual appropriation of funds.

 

     (16) (13) Contracts and grant memorandum agreements may be

 

audited by the state transportation commission's office of

 

commission audits using rules promulgated by the United States

 

general accounting office and the terms and conditions of the

 

respective contracts and agreements. Third party agreements are

 

subject to the review and approval of the department.

 

     (17) (14) Funds distributed by the department may pay 100% of

 

the portion of the cost not eligible for reimbursement by the

 

federal government for eligible capital projects approved by the

 

department or authorized by the state transportation commission

 

using comprehensive transportation funds or the proceeds of notes

 

and bonds issued under section 18b. Priority for funding obligation

 

obligations shall be given to capital projects for which federal

 

funds have been authorized.

 

     (15) All approved local bus new services initiated by eligible

 

authorities and eligible governmental agencies not in their fourth

 

year or beyond of funding on October 1, 1988, shall be funded from

 

subsection (4)(c)(iii). Local bus new services shall be funded under

 

subsection (4)(c)(iii) in the following percentages of eligible

 

operating expenses as determined by the department:

 

     (a) Startup 100%.

 

     (b) First year 90%.

 

     (c) Second year 80%.

 

     (d) Third year 70%.

 

     (e) Fourth year and each year thereafter, as determined by and

 

from funds provided under subsection (4)(a). The balance of

 

eligible operating expenses shall be met from local revenue sources

 

including farebox. The department shall pay up to 100% of eligible

 

capital expenses during the startup and first 3 years of service,

 

after the third year, the department shall participate in eligible

 

capital expenses in the same percentage as for other eligible

 

authorities and eligible governmental agencies. For the purposes of

 

this subsection, eligible operating and capital expenses means

 

those expenses determined by the department as applicable to

 

existing eligible authorities and eligible governmental agencies.

 

The department shall prioritize annually all requests for

 

comprehensive transportation funds to institute new services under

 

this subsection. First priority shall be given to eligible

 

authorities and eligible governmental agencies who have not

 

completed their first 3 years of service by October 1, 1998. New

 

services initiated by eligible authorities and eligible

 

governmental agencies under this subsection shall meet all of the

 

requirements of section 10.

 

     (16) The department shall pay up to 80% of the portion of the

 

cost not eligible for reimbursement by the federal government for

 

intercity passenger operating assistance projects authorized by the

 

commission for the first 2 years of new services. For the third

 

year, eligible costs shall be reimbursed at up to 60% of the

 

portion of the cost not eligible for reimbursement by the federal

 

government. After the third year, eligible costs shall be

 

reimbursed at up to 50% of the portion of the cost not eligible for

 

reimbursement by the federal government. Eligible costs of services

 

provided as of September 30, 1981, shall be reimbursed at up to 50%

 

of the portion of the cost not eligible for reimbursement by the

 

federal government. However, the amount of funds from the

 

comprehensive transportation fund when added to federal funds and

 

local funds shall not exceed the total operating assistance project

 

cost.

 

     (18) (17) A vehicle purchased, leased, or rented after

 

November 15, 1976, by an eligible authority or eligible

 

governmental agency with funds made available under this act ,

 

which funds were not already committed under a contract in

 

existence on November 15, 1976, shall not be used to provide

 

service on a fixed schedule and fixed route for which a passenger

 

fee is charged unless the vehicle is accessible to a person using a

 

wheelchair from a roadway level or curb level, and has

 

accommodations in which 1 or more wheelchairs can be secured.

 

     (19) (18) A vehicle shall not be purchased, leased, or rented

 

by an An eligible authority or eligible governmental agency after

 

October 1, 1978, shall not purchase, lease, or rent a vehicle for

 

the purpose of providing demand actuated service with funds made

 

available under this act which vehicle is used to provide demand

 

actuated service unless the eligible authority or eligible

 

governmental agency has submitted a plan to the state

 

transportation department describing the service to be provided by

 

the demand actuated service to persons 65 years of age or older and

 

persons with disabilities within the applicable service area and

 

that plan has been approved by the department. The department shall

 

approve the plan as submitted or modified or shall reject the plan

 

within not later than 60 days after the plan is submitted. A plan

 

which that describes the service to be provided by the demand

 

actuated service shall not be approved by the department unless

 

that plan provides the following:

 

     (a) That demand actuated service will be provided to persons

 

65 years of age or older and persons with disabilities residing in

 

the entire service area subject to the plan.

 

     (b) That as a minimum, demand actuated service will be

 

provided to persons 65 years of age or older and persons with

 

disabilities during the same hours as that service is provided to

 

all other persons in the service area subject to the plan.

 

     (c) That the average time period required for demand actuated

 

service to persons 65 years of age or older and persons with

 

disabilities from the initiation of a service request to arrival at

 

the destination is equal to the average time period required for

 

demand actuated service provided to all other persons in the

 

service area subject to the plan.

 

     (d) That the eligible authority or eligible governmental

 

agency submitting the plan has established a local advisory council

 

with not less than 50% of its membership representing persons 65

 

years of age or older and persons with disabilities within the

 

service area subject to the plan and that the local advisory

 

council has had an opportunity to review and comment upon the plan

 

before its submission to the department. Each eligible authority or

 

eligible governmental agency jointly with the area agency on aging

 

shall approve at least 1 or the equivalent of 12% of the membership

 

of the local advisory council. Each advisory council comment shall

 

be included in the plan when submitted to the department.

 

     (20) (19) Notwithstanding subsection (18) (19), a plan

 

required by subsection (18) which (19) that is not approved or

 

rejected by the state transportation department within 60 days

 

after submission shall be considered approved as submitted.

 

     (21) (20) Subsections (17) (18), (18) (19), and (19) (20)

 

shall not apply to vehicles or facilities used to transport persons

 

by rail, air, or water or to vehicles of common carriers licensed

 

by the state transportation department.

 

     (22) (21) After January 1, 1979, the The department shall

 

submit prepare an annual report to for the legislature detailing

 

the service provided in the prior year for persons 65 years of age

 

or older and persons with disabilities by fixed route service and

 

demand actuated service. This report shall include a record of

 

passenger usage and shall be submitted posted on the department's

 

internet website by April 1 of each year.

 

     (23) (22) Notwithstanding any other provision of this section,

 

for each fiscal year that begins after September 30, 2009, the

 

governor and the state budget director shall include in the annual

 

budget submitted to the legislature for the ensuing fiscal period

 

under section 18 of article V of the state constitution of 1963 an

 

appropriation from a fund or funds other than the comprehensive

 

transportation fund to a street railway organized under the

 

nonprofit street railway act, 1867 PA 35, MCL 472.1 to 472.27, of a

 

sum equal to the difference between the annual operating expenses

 

of the street railway and revenue received by the street railway

 

during the same annual period, including, but not limited to, tax

 

increment revenues received by the street railway under section 23

 

of the nonprofit street railway act, 1867 PA 35, MCL 472.23, and

 

operating assistance distributed to the street railway through the

 

urban transit modernization investment program under subsection

 

(5)(e). The appropriation submitted in the budget under this

 

section shall not exceed 8% of the total private investment in the

 

street railway as determined by the department. A street railway is

 

not an eligible authority or eligible governmental agency for

 

purposes of subdivision (4)(a) the statewide operating grants

 

program under subsection (4) and the statewide capital match

 

program under subsection (5)(d).

 

     Sec. 10h. (1) By May 1 of each year, the state transportation

 

commission shall report to each member of the legislature, the

 

governor, and the auditor general its recommendations for a

 

transportation program which the state transportation commission

 

acts on under section 10e(10). approve a 5-year program of planned

 

investment of comprehensive transportation fund revenues. The

 

report program shall specify include all of the following:

 

     (a) The estimated amount of money in the comprehensive

 

transportation fund to be distributed in the following fiscal year

 

and the amount of money in the comprehensive transportation fund to

 

be distributed to each eligible authority, each intercity carrier,

 

each eligible governmental agency, and the state transportation

 

department; the estimated amount of money in the state trunk line

 

fund to be distributed to the state transportation department for

 

the preservation, as defined in section 10c, of state trunk line

 

highways; and the estimated amount of money in the state trunk line

 

fund to be distributed to the state transportation department for

 

all other purposes in the following fiscal year. The report shall

 

further subdivide the money to be distributed to each eligible

 

authority, each intercity carrier, each eligible governmental

 

agency, the state transportation department from the comprehensive

 

transportation fund, the state transportation department from the

 

state trunk line fund for the preservation of state trunk line

 

highways, and the state transportation department from the state

 

trunk line fund for all other purposes specifying how much of that

 

money is proposed to be expended for either capital acquisitions,

 

including demonstration projects, or for operating expenses,

 

including demonstration projects.A plan for investment of

 

comprehensive transportation fund revenues in each of the programs

 

described in section 10e and planned project investments under the

 

urban transit modernization investment program under subsection

 

(5)(e). For planned project investments under the urban transit

 

modernization investment program, the plan shall include a

 

description of the project and the anticipated total dollar amount

 

of comprehensive transportation fund investments.

 

     (b) An account of all expenditures of funds distributed the

 

investments made from the state trunk line fund and the

 

comprehensive transportation fund to the state transportation

 

department, eligible authorities, intercity carriers, and eligible

 

governmental agencies, for each of the programs described in

 

section 10e and the progress made by the state transportation

 

department, eligible authorities , or agencies, and intercity

 

carriers , and eligible governmental agencies in carrying out the

 

approved transportation programs each program and the individual

 

projects approved for funding under the urban modernization

 

investment program in the preceding fiscal year. through the use of

 

those funds. The progress report shall be made based on information

 

supplied to the state transportation department on forms authorized

 

by the federal department of transportation. For those eligible

 

authorities, intercity carriers, and eligible governmental agencies

 

not receiving federal funds pursuant to the urban mass

 

transportation act of 1964, Public Law 88-365, the progress report

 

shall be made upon forms supplied by the state transportation

 

department. The progress report shall also contain the whole amount

 

of the expenses of the state transportation department for the

 

fiscal year.

 

     (c) Each project certified to be eligible approved for a

 

multiyear funding commitment.

 

     (d) The status of all multiyear funding commitments.

 

     (e) An account of the state transportation department's

 

compliance in the preceding year with the requirements of section

 

11(2) and (3). The report shall also specify the justification for

 

a waiver of the requirement of section 11(3), if that requirement

 

was waived.

 

     (2) The financial transactions and accounts related to

 

distributions made from the comprehensive transportation fund to an

 

eligible authority created under the metropolitan transportation

 

authorities act of 1967, 1967 PA 204, MCL 124.401 to 124.426, shall

 

be audited pursuant to that act. The cost of the audit shall be

 

paid by the eligible authority. The financial transactions and

 

accounts related to distributions made from the fund to an eligible

 

governmental authority or agency, other than an authority created

 

under the metropolitan transportation authorities act of 1967, 1967

 

PA 204, MCL 124.401 to 124.426, or a county, shall be audited in

 

accordance with the uniform budgeting and accounting act, 1968 PA

 

2, MCL 141.421 to 141.440a. The financial transactions and accounts

 

related to distributions made from the fund to a county which is an

 

eligible governmental agency shall be audited in accordance with

 

1919 PA 71, MCL 21.41 to 21.55. The financial transactions and

 

accounts relative to distributions made to an intercity carrier

 

shall be audited by an independent certified public accountant in

 

accordance with instructions promulgated by the department of

 

treasury. A copy of the complete audit report and management letter

 

shall be submitted by the eligible authority, intercity carrier, or

 

eligible governmental agency, or intercity carrier to the state

 

transportation department. The department of treasury shall develop

 

minimum audit standards and requirements.

 

     (3) There is hereby established a task force composed of the

 

Michigan public transit association, the Michigan motorbus

 

association, the Michigan rail users and supporters association,

 

the Michigan railroad association, a representative of a state-

 

owned or leased short line railroad, and the office of auditor

 

general or a certified public accountant appointed by the auditor

 

general, to assist the department in the development of the

 

progress report requirements outlined in subsection (1)(b).

 

     Enacting section 1. Sections 10d and 10l of 1951 PA 51, MCL

 

247.660d and 247.660l, are repealed.