SENATE BILL No. 312

 

 

EXECUTIVE BUDGET BILL

 

 

March 3, 2009, Introduced by Senator ANDERSON and referred to the Committee on Appropriations.

 

 

 

     A bill to make appropriations for the state transportation

 

department and certain transportation purposes for the fiscal year

 

ending September 30, 2010; to provide for the imposition of fees;

 

to provide for reports; to create certain funds and programs; to

 

prescribe requirements for certain railroad and bus facilities; to

 

prescribe certain powers and duties of certain state departments

 

and officials and local units of government; and to provide for the

 

expenditure of the appropriations.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

     Sec. 101. Subject to the conditions set forth in this bill,

 

the amounts listed in this part are appropriated for the state

 


transportation department and certain state purposes designated in

 

this bill for the fiscal year ending September 30, 2010, from the

 

funds indicated in this part. The following is a summary of the

 

appropriations in this part:

 

STATE TRANSPORTATION DEPARTMENT

 

APPROPRIATION SUMMARY:

 

   Full-time equated unclassified positions.......... 6.0

 

   Full-time equated classified positions........ 3,008.3

 

GROSS APPROPRIATION.................................... $  3,268,120,900

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $  3,268,120,900

 

   Federal revenues:

 

Total federal revenues.................................     1,226,704,500

 

   Special revenue funds:

 

Total local revenues...................................        56,073,400

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................     1,985,343,000

 

State general fund/general purpose..................... $              0

 

   Sec. 102. DEBT SERVICE

 

State trunkline........................................ $    203,125,200

 

Economic development...................................         9,228,200

 

Local bridge fund......................................         3,318,700

 

Blue Water Bridge fund.................................         2,149,600

 

Airport safety and protection plan.....................         3,472,400

 

Comprehensive transportation...........................        29,843,200

 

GROSS APPROPRIATION.................................... $    251,137,300

 


    Appropriated from:

 

   Federal revenues:

 

DOT-FHWA, highway research, planning, and construction.        57,663,500

 

   Special revenue funds:

 

Blue Water Bridge fund.................................         2,149,600

 

Comprehensive transportation fund......................        29,843,200

 

Economic development fund..............................         9,228,200

 

Local bridge fund......................................         3,318,700

 

State aeronautics fund.................................         3,472,400

 

State trunkline fund...................................       145,461,700

 

State general fund/general purpose..................... $              0

 

   Sec. 103. COLLECTION, ENFORCEMENT, AND OTHER AGENCY

 

SUPPORT SERVICES

 

MTF grant to department of state for collection of

 

   revenue and fees..................................... $     20,000,000

 

MTF grant to department of treasury....................         7,440,700

 

MTF grant to legislative auditor general...............           204,300

 

STF grant to department of attorney general............         2,867,400

 

STF grant to civil service commission..................         5,697,000

 

STF grant to department of management and budget.......         1,188,300

 

STF grant to department of state police................         9,808,000

 

STF grant to department of treasury....................           179,100

 

STF grant to legislative auditor general...............           474,600

 

SAF grant to department of attorney general............           160,300

 

SAF grant to civil service commission..................           150,000

 

SAF grant to department of management and budget.......            24,700

 

SAF grant to department of treasury....................            74,700

 


SAF grant to legislative auditor general...............            19,600

 

CTF grant to department of attorney general............           162,400

 

CTF grant to civil service commission..................           200,000

 

CTF grant to department of management and budget.......            34,800

 

CTF grant to department of treasury....................             4,100

 

CTF grant to legislative auditor general...............            25,200

 

GROSS APPROPRIATION.................................... $     48,715,200

 

    Appropriated from:

 

   Special revenue funds:

 

Comprehensive transportation fund......................           426,500

 

Michigan transportation fund...........................        27,645,000

 

State aeronautics fund.................................           429,300

 

State trunkline fund...................................        20,214,400

 

State general fund/general purpose..................... $              0

 

   Sec. 104. EXECUTIVE DIRECTION

 

   Full-time equated unclassified positions.......... 6.0

 

   Full-time equated classified positions........... 31.3

 

Unclassified salaries.................................. $        602,800

 

Asset management council...............................         1,626,400

 

Commission audit--31.3 FTE positions...................         3,574,600

 

GROSS APPROPRIATION.................................... $      5,803,800

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan transportation fund...........................         1,626,400

 

State trunkline fund...................................         4,177,400

 

State general fund/general purpose..................... $              0

 

   Sec. 105. BUSINESS SUPPORT

 


   Full-time equated classified positions........... 57.0

 

Business support services--48.0 FTE positions.......... $      6,076,300

 

Economic development and enhancement programs--9.0 FTE

 

   positions............................................         1,175,200

 

Property management....................................         8,642,100

 

Worker's compensation..................................         1,726,700

 

GROSS APPROPRIATION.................................... $     17,620,300

 

    Appropriated from:

 

   Special revenue funds:

 

Comprehensive transportation fund......................         1,128,300

 

Economic development fund..............................           482,700

 

Michigan transportation fund...........................           185,000

 

State aeronautics fund.................................           549,600

 

State trunkline fund...................................        15,274,700

 

State general fund/general purpose..................... $              0

 

   Sec. 106. INFORMATION TECHNOLOGY

 

Information technology services and projects........... $      29,313,200

 

GROSS APPROPRIATION.................................... $     29,313,200

 

    Appropriated from:

 

   Federal revenues:

 

DOT-FHWA, highway research, planning, and construction.           510,800

 

   Special revenue funds:

 

Blue Water Bridge fund.................................            48,200

 

Comprehensive transportation fund......................           188,800

 

Economic development fund..............................            37,100

 

Michigan transportation fund...........................           249,400

 

State aeronautics fund.................................           147,400

 


State trunkline fund...................................        28,131,500

 

State general fund/general purpose..................... $              0

 

   Sec. 107. FINANCE, CONTRACTS, AND SUPPORT SERVICES

 

   Full-time equated classified positions.......... 243.5

 

Finance, contracts, and support services--188.5 FTE

 

   positions............................................ $     20,071,800

 

Welcome center operations--55.0 FTE positions..........         4,986,500

 

GROSS APPROPRIATION.................................... $     25,058,300

 

    Appropriated from:

 

   Special revenue funds:

 

Michigan transportation fund...........................         1,625,200

 

State trunkline fund...................................        23,433,100

 

State general fund/general purpose..................... $              0

 

   Sec. 108. TRANSPORTATION PLANNING

 

   Full-time equated classified positions.......... 176.0

 

Transportation planning services--176.0 FTE positions.. $     19,429,600

 

Specialized planning services and local studies........        16,698,200

 

Grants to regional planning councils...................           488,800

 

GROSS APPROPRIATION.................................... $     36,616,600

 

    Appropriated from:

 

   Federal revenues:

 

DOT-FHWA, highway research, planning, and construction.        22,000,000

 

   Special revenue funds:

 

Comprehensive transportation fund......................           960,300

 

Michigan transportation fund...........................         6,304,500

 

State aeronautics fund.................................            75,000

 

State trunkline fund...................................         7,276,800

 


State general fund/general purpose..................... $              0

 

   Sec. 109. DESIGN AND ENGINEERING SERVICES

 

   Full-time equated classified positions........ 1,494.8

 

Engineering services--787.1 FTE positions.............. $     62,992,700

 

Program services--695.7 FTE positions..................        40,423,400

 

Intelligent transportation systems operations--12.0    

 

   FTE positions........................................        10,785,400

 

GROSS APPROPRIATION.................................... $    114,201,500

 

    Appropriated from:

 

   Federal revenues:

 

DOT-FHWA, highway research, planning, and construction.        23,529,800

 

   Special revenue funds:

 

Michigan transportation fund...........................         5,835,200

 

State trunkline fund...................................        84,836,500

 

State general fund/general purpose..................... $              0

 

   Sec. 110. HIGHWAY MAINTENANCE

 

   Full-time equated classified positions.......... 834.7

 

State trunkline operations--834.7 FTE positions........ $     286,528,100

 

   GROSS APPROPRIATION.................................. $    286,528,100

 

    Appropriated from:

 

   Special revenue funds:

 

State trunkline fund...................................       286,528,100

 

State general fund/general purpose..................... $              0

 

   Sec. 111. ROAD AND BRIDGE PROGRAMS

 

State trunkline federal aid and road and bridge

 

   construction......................................... $    794,418,800

 

Local federal aid and road and bridge construction.....       248,751,000

 


Grants to local programs...............................        33,000,000

 

Rail grade crossing....................................         3,000,000

 

Local bridge program...................................        26,905,000

 

County road commissions................................       568,937,400

 

Cities and villages....................................       317,208,000

 

GROSS APPROPRIATION.................................... $  1,992,220,200

 

    Appropriated from:

 

   Federal revenues:

 

DOT-FHWA, highway research, planning, and construction.       955,963,600

 

   Special revenue funds:

 

Local funds............................................        30,000,000

 

Blue Water Bridge fund.................................         7,107,300

 

Local bridge fund......................................        26,905,000

 

Michigan transportation fund...........................       922,145,400

 

State trunkline fund...................................        50,098,900

 

State general fund/general purpose..................... $              0

 

   Sec. 112. BLUE WATER BRIDGE

 

   Full-time equated classified positions........... 41.0

 

Blue Water Bridge operations--41.0 FTE positions....... $       5,401,200

 

GROSS APPROPRIATION.................................... $      5,401,200

 

    Appropriated from:

 

   Special revenue funds:

 

Blue Water Bridge fund.................................         5,401,200

 

State general fund/general purpose..................... $              0

 

   Sec. 113. TRANSPORTATION ECONOMIC DEVELOPMENT

 

Forest roads........................................... $      5,000,000

 

Rural county urban system..............................         2,500,000

 


Target industries/economic redevelopment...............        20,863,400

 

Urban county congestion................................         8,681,800

 

Rural county primary...................................         8,681,800

 

GROSS APPROPRIATION.................................... $     45,727,000

 

    Appropriated from:

 

   Special revenue funds:

 

Economic development fund..............................        45,727,000

 

State general fund/general purpose..................... $              0

 

   Sec. 114. AERONAUTICS AND FREIGHT SERVICES

 

   Full-time equated classified positions........... 84.0

 

Aeronautics services--56.0 FTE positions............... $      7,203,100

 

Freight and safety services--28.0 FTE positions........         3,562,700

 

Air service program....................................           464,600

 

GROSS APPROPRIATION.................................... $     11,230,400

 

    Appropriated from:

 

   Special revenue funds:

 

Comprehensive transportation fund......................         1,541,400

 

Michigan transportation fund...........................         2,021,300

 

State aeronautics fund.................................         7,667,700

 

State general fund/general purpose..................... $              0

 

   Sec. 115. PUBLIC TRANSPORTATION SERVICES

 

   Full-time equated classified positions........... 46.0

 

Passenger transportation services--46.0 FTE positions.. $       5,455,400

 

GROSS APPROPRIATION.................................... $      5,455,400

 

    Appropriated from:

 

   Federal revenues:

 

DOT, federal transit act...............................           762,100

 


   Special revenue funds:

 

Comprehensive transportation fund......................         4,490,300

 

Michigan transportation fund...........................           203,000

 

State general fund/general purpose..................... $              0

 

   Sec. 116. BUS TRANSIT DIVISION: STATUTORY OPERATING

 

Local bus operating.................................... $    166,624,000

 

Nonurban operating/capital.............................        21,800,000

 

GROSS APPROPRIATION.................................... $    188,424,000

 

    Appropriated from:

 

   Federal revenues:

 

DOT, federal transit act...............................        21,000,000

 

   Special revenue funds:

 

Local fund.............................................           800,000

 

Comprehensive transportation fund......................       166,624,000

 

State general fund/general purpose..................... $              0

 

   Sec. 117. INTERCITY PASSENGER AND FREIGHT

 

Freight property management............................ $      1,000,000

 

Detroit/Wayne County port authority....................           468,200

 

Intercity services.....................................         7,250,000

 

Rail passenger service.................................         8,667,000

 

Freight preservation and development...................         3,364,200

 

Marine passenger service...............................           374,600

 

Terminal development...................................           150,000

 

GROSS APPROPRIATION.................................... $     21,274,000

 

    Appropriated from:

 

   Federal revenues:

 

DOT, federal transit act...............................         4,500,000

 


DOT-FRA, local rail service assistance.................           100,000

 

DOT-FRA, rail passenger/HSGT...........................         3,000,000

 

   Special revenue funds:

 

Local funds............................................            50,000

 

Comprehensive transportation fund......................         9,624,000

 

Intercity bus equipment fund...........................         2,000,000

 

Rail freight fund......................................         2,000,000

 

State general fund/general purpose..................... $              0

 

   Sec. 118. PUBLIC TRANSPORTATION DEVELOPMENT

 

Specialized services................................... $      7,248,100

 

Municipal credit program...............................         1,873,000

 

Bus capital............................................        38,178,200

 

Van pooling............................................           195,000

 

Service initiatives....................................         1,050,000

 

Transportation to work.................................         9,136,400

 

GROSS APPROPRIATION.................................... $     57,680,700

 

    Appropriated from:

 

   Federal revenues:

 

DOT, federal transit act...............................        32,800,000

 

   Special revenue funds:

 

Local funds............................................         9,200,000

 

Comprehensive transportation fund......................        15,680,700

 

State general fund/general purpose..................... $              0

 

   Sec. 119. CAPITAL OUTLAY

 

   (1) BUILDINGS AND FACILITIES

 

Special maintenance, remodeling, and additions......... $       2,288,000                                                      

 

GROSS APPROPRIATION.................................... $      2,288,000

 


   Appropriated from:

 

   Special revenue funds:

 

State trunkline fund...................................         2,288,000

 

State general fund/general purpose..................... $              0

 

   (2) AIRPORT IMPROVEMENT PROGRAMS

 

Airport safety, protection and improvement program..... $     123,425,700

 

GROSS APPROPRIATION.................................... $    123,425,700

 

   Appropriated from:

 

   Federal revenues:

 

DOT, federal aviation administration...................       104,874,700

 

   Special revenue funds:

 

Local funds............................................        16,023,400

 

State aeronautics fund.................................         2,527,600

 

State general fund/general purpose..................... $              0

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

     Sec. 201. Pursuant to section 30 of article IX of the state

 

constitution of 1963, total state spending from state resources

 

under part 1 for fiscal year 2009-2010 is $1,985,343,000 and state

 

spending from state resources to be paid to local units of

 

government for fiscal year 2009-2010 is $1,180,335,900. The

 

itemized statement below identifies appropriations from which

 

spending to units of local government will occur:

 

DEPARTMENT OF TRANSPORTATION

 


Grants to local programs............................... $     33,000,000

 

Economic development fund..............................        45,727,000

 

Cities and villages....................................       317,208,000

 

County road commissions................................       568,937,400

 

Local bridge program...................................        26,905,000

 

Grants to regional planning councils...................           488,800

 

Local bus operating....................................       166,624,000

 

Bus capital............................................         5,178,200

 

Marine passenger service...............................           374,600

 

Detroit/Wayne County port authority....................           468,200

 

Municipal credit program...............................         1,873,000     

 

Specialized services...................................         3,848,100

 

Transportation to work.................................         4,536,400

 

Terminal development...................................            75,000

 

Air service program....................................           464,600

 

Rail grade crossing....................................         2,100,000

 

CAPITAL OUTLAY

 

Airport safety, protection, and improvement program....         2,527,600

 

Total payments to local units of government............ $  1,180,335,900

 

     Sec. 202. The appropriations authorized under this bill are

 

subject to the management and budget act, 1984 PA 431, MCL 18.1101

 

to 18.1594.

 

     Sec. 203. As used in this bill:

 

     (a) "AASHTO" means American association of state highway and

 

transportation officials.

 

     (b) "ASTM" means American society for testing and materials.

 

(c) "CTF" means comprehensive transportation fund.


 

     (d) "Department" means the department of transportation.

 

     (e) "DOT" means the United States department of

 

transportation.

 

     (f) "DOT-FHWA" means DOT, federal highway administration.

 

     (g) "DOT-FRA" means DOT, federal railroad administration.

 

     (h) "DOT-FRA, rail passenger/HSGT" means DOT, federal railroad

 

administration, high-speed ground transportation.

 

     (i) "EDF" means economic development fund.

 

     (j) "FTE" means full-time equated.

 

     (k) "MTF" means Michigan transportation fund.

 

     (l) "RIF" means recreation improvement fund.

 

     (m) "SAF" means state aeronautics fund.

 

     (n) "STF" means state trunkline fund.

 

     Sec. 204. The civil service commission shall bill `departments

 

and agencies at the end of the first fiscal quarter for the charges

 

authorized by section 5 of article XI of the state constitution of

 

1963. Payments shall be made for the total amount of the billing by

 

the end of the second fiscal quarter.

 

     Sec. 206. (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 this bill under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

     (2) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $40,000,000.00 for state

 

restricted contingency funds. These funds are not available for


 

expenditure until they have been transferred to another line item

 

in this bill under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

     (3) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $1,000,000.00 for local

 

contingency funds. These funds are not available for expenditure

 

until they have been transferred to another line item in this bill

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     (4) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $1,000,000.00 for private

 

contingency funds. These funds are not available for expenditure

 

until they have been transferred to another line item in this bill

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     Sec. 208. The department shall use the Internet to fulfill the

 

reporting requirements of this bill. This requirement may include

 

transmission of reports via electronic mail to the recipients

 

identified for each reporting requirement, or it may include

 

placement of reports on an Internet or Intranet site.

 

     Sec. 209. Funds appropriated in part 1 shall not be used for

 

the purchase of foreign goods or services, or both, if

 

competitively priced and of comparable quality American goods or

 

services, or both, are available. Preference 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 should 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. 210. The director shall take all reasonable steps to

 

ensure businesses in deprived and depressed communities compete for

 

and perform contracts to provide services or supplies, or both. The

 

director shall strongly encourage firms with which the department

 

contracts to subcontract with certified businesses in deprived and

 

depressed communities for services, supplies, or both.

 

     Sec. 259. From the funds appropriated in part 1 for

 

information technology, the department shall pay user fees to the

 

department of information technology for technology-related

 

services and projects. Such user fees shall be subject to

 

provisions of an interagency agreement between the department and

 

the department of information technology.

 

     Sec. 260. (1) Due to the current budgetary problems in this

 

state, out-of-state travel for the fiscal year ending September 30,

 

2010 shall be limited to situations in which 1 or more of the

 

following conditions apply:

 

     (a) The travel is required by legal mandate or court order or

 

for law enforcement purposes.

 

     (b) The travel is necessary to protect the health or safety of

 

Michigan citizens or visitors or to assist other states in similar

 

circumstances.

 

     (c) The travel is necessary to produce budgetary savings or to

 

increase state revenues, including protecting existing federal

 

funds or securing additional federal funds.


 

     (d) The travel is necessary to comply with federal

 

requirements.

 

     (e) The travel is necessary to secure specialized training for

 

staff that is not available within this state.

 

     (f) The travel is financed entirely by federal or nonstate

 

funds.

 

     (2) Not later than January 1 of each year, each department

 

shall prepare a travel report listing all travel by classified and

 

unclassified employees outside this state in the immediately

 

preceding fiscal year that was funded in whole or in part with

 

funds appropriated in the department's budget. The report shall be

 

submitted to the senate and house of representatives standing

 

committees on appropriations, the senate and house fiscal agencies,

 

and the state budget director. The report shall include the

 

following information:

 

     (a) The name of each person receiving reimbursement for travel

 

outside this state or whose travel costs were paid by this state.

 

     (b) The destination of each travel occurrence.

 

     (c) The dates of each travel occurrence.

 

     (d) A brief statement of the reason for each travel

 

occurrence.

 

     (e) The transportation and related costs of each travel

 

occurrence, including the proportion funded with state general

 

fund/general purpose revenues, the proportion funded with state

 

restricted revenues, the proportion funded with federal revenues,

 

and the proportion funded with other revenues.

 

     (f) A total of all out-of-state travel funded for the


 

immediately preceding fiscal year.

 

     Sec. 262. 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.

 

 

 

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. 304. If, as a requirement of bidding on a highway


 

project, the department requires a contractor to submit financial

 

or proprietary documentation as to how the bid was calculated, that

 

bid documentation shall be kept confidential and shall not be

 

disclosed other than to a department representative without the

 

contractor's written consent. The department may disclose the bid

 

documentation if necessary to address or defend a claim by a

 

contractor.

 

     Sec. 305. The department may permit space on 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.

 

     Sec. 306. (1) The amounts appropriated in section 103 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 interdepartmental

 

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 by the auditor general as provided

 

in subsection (3).

 

     (3) Biennially, in each even-numbered fiscal year, the auditor

 

general shall conduct an audit of charges to transportation funds

 

by state departments for the 2 preceding fiscal years. The audit

 

shall include both charges governed by interdepartmental contracts

 

as well as miscellaneous charges from other state departments not

 

governed by contracts. The auditor general shall prepare a detailed

 

report, with recommendations and conclusions, including a summary

 

of charges and related services to transportation funds by

 

department, the appropriateness of those charges, the cost

 

allocation methodologies used in determining the level of funding,

 

and any unreimbursed transportation-related costs, if any. The

 

report shall be provided to the senate and house of representatives

 

committees on appropriations, the senate and house fiscal agencies,

 

and the state budget director 9 months after publication of the


 

state of Michigan comprehensive annual financial report.

 

     Sec. 307. Before March 1 of each year, the department will

 

provide to the legislature, the state budget director, and the

 

house and senate fiscal agencies its rolling 5-year plan listing by

 

county or by county road commission all highway construction

 

projects for the fiscal year and all expected projects for the

 

ensuing fiscal years.

 

     Sec. 308. The department and local road agencies that receive

 

appropriations under this bill shall pursue compliance with

 

contract specifications for construction and maintenance of state

 

highways and local roads and streets. Work shall not be accepted

 

and paid for until it complies with contract requirements.

 

Contractors with unsatisfactory performance ratings shall be

 

restricted from future bidding through the prequalification process

 

established by the department or a local road agency.

 

     Sec. 309. The department shall continue its efforts to reduce

 

administrative costs and provide the maximum funding possible for

 

construction projects.

 

     Sec. 310. The department shall provide in a timely manner,

 

copies of the agenda and approved minutes of monthly transportation

 

commission meetings to the members of the house and senate

 

appropriations subcommittees on transportation, the house and

 

senate fiscal agencies, and the state budget director.

 

     Sec. 312. At the close of the fiscal year, any unencumbered

 

and unexpended balance in the state trunkline fund shall remain in

 

the state trunkline fund and shall carry forward and is

 

appropriated for federal aid road and bridge programs for projects


 

contained in the annual state transportation program.

 

     Sec. 313. (1) From funds appropriated in part 1, the

 

department may increase a state infrastructure bank program and

 

grant or loan funds in accordance with regulations of the state

 

infrastructure bank program of the United States department of

 

transportation. The state infrastructure bank is to be administered

 

by the department for the purpose of providing a revolving, self-

 

sustaining resource for financing transportation infrastructure

 

projects.

 

     (2) In addition to funds provided in subsection (1), money

 

received by the state as federal grants, repayment of state

 

infrastructure bank loans, or other reimbursement or revenue

 

received by the state as a result of projects funded by the program

 

and interest earned on that money shall be deposited in the

 

revolving state infrastructure bank fund and shall be available for

 

transportation infrastructure projects. At the close of the fiscal

 

year, any unencumbered funds remaining in the state infrastructure

 

bank fund shall remain in the fund and be carried forward into the

 

succeeding fiscal year.

 

     Sec. 334. The department shall continue its program to

 

increase the use of women- and minority-owned businesses in state

 

and local road construction projects. This program shall comprise,

 

at a minimum, outreach and education efforts to inform women- and

 

minority-owned firms of department competitive bidding processes

 

and requirements, and an assessment of the availability of surety

 

for women- and minority-owned businesses.

 

     Sec. 375. The department is prohibited from reimbursing


 

contractors or consultants for costs associated with groundbreaking

 

ceremonies, receptions, open houses, or press conferences related

 

to transportation projects funded, in whole or in part, by revenue

 

appropriated in part 1.

 

     Sec. 383. The department shall maintain a system for

 

recovering the cost of operating department-owned aircraft through

 

charges to aircraft users.

 

 

 

FEDERAL

 

     Sec. 401. Within 30 days of receiving the applicable fiscal

 

year authorization from the federal government to commit

 

transportation funds, the department shall notify local agency

 

representatives, the senate and house of representatives

 

appropriation transportation subcommittees, the senate and house

 

fiscal agencies, and the state budget director regarding the amount

 

of federal aid for categorical allocations to state and local

 

agency programs not specifically allocated in either federal or

 

state law.

 

     Sec. 402. A portion of the federal DOT-FHWA highway research,

 

planning, and construction funds made available to the 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.

 

 

 

MICHIGAN TRANSPORTATION FUND

 

     Sec. 501. The money received under the motor carrier act, 1933

 

PA 254, MCL 475.1 to 479.43, and not appropriated to the department

 

of energy, labor and economic growth or the department of state

 

police is deposited in the Michigan transportation fund.

 

     Sec. 502. The department of treasury shall perform audits and

 

make investigations of the disposition of all state funds received

 

by county road commissions or county boards of commissioners, as

 

applicable, and cities and villages for transportation purposes to

 

determine compliance with the terms and conditions of 1951 PA 51,

 

MCL 247.651 to 247.675. County road commissions or county boards of

 

commissioners, as applicable, and cities and villages shall make

 

available to the department of treasury the pertinent records for

 

the audit.

 

     Sec. 503. (1) The funds appropriated in part 1 for the

 

economic development and local bridge programs shall not lapse at

 

the end of the fiscal year but shall carry forward each fiscal year

 

for the purposes for which appropriated in accordance with 1987 PA

 

231, MCL 247.901 to 247.913, and section 10(5) of 1951 PA 51, MCL

 

247.660.

 

     (2) Interest earned in the department of transportation

 

economic development fund and local bridge fund shall remain in the

 

respective funds and shall be allocated to the respective programs


 

based on actual interest earned at the end of each fiscal year.

 

     (3) In addition to the funds appropriated in part 1, the

 

department of transportation economic development fund and local

 

bridge fund, federal, local, private or restricted source funds

 

such as interest earnings are appropriated for projects that are

 

consistent with the programmatic mission 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 (MTF)

 

shall be distributed to the comprehensive transportation fund

 

(CTF), the economic development fund (EDF), the recreation

 

improvement fund (RIF), and the state trunkline fund (STF), in

 

accordance with this bill and part 711 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.71101 to

 

324.71108, and may only be used as specified in this bill, 1951 PA

 

51, MCL 247.651 to 247.675, and part 711 of the natural resources

 

and environmental protection act, 1994 PA 451, MCL 324.71101 to

 

324.71108.

 

 

 

STATE TRUNKLINE FUND

 

     Sec. 601. The department shall work with the road construction

 

industry and engineering consulting community to develop

 

performance and road construction warranties for construction

 

contracts. The development of warranties shall include warranties

 

on materials, workmanship, performance criteria, and design/build

 

projects.


 

     Sec. 602. If the department uses manufactured pipe for road

 

construction drainage, the department shall require that pipe used

 

under certain load-bearing conditions beneath the roadway meets the

 

standards established by the American society for testing and

 

materials (ASTM) or American association of state highway and

 

transportation officials (AASHTO). The department may also use the

 

mandrel test for manufactured pipe 60 days after installation.

 

 

 

COMPREHENSIVE TRANSPORTATION FUND

 

     Sec. 701. Money that is received by the state as a lease

 

payment for state-owned intercity bus equipment is not money to be

 

deposited in the comprehensive transportation fund under section

 

10b of 1951 PA 51, MCL 247.660b, but is money that is deposited in

 

an intercity bus equipment fund for appropriation for the purchase

 

and repair of intercity bus equipment. Proceeds received by the

 

state from the sale of intercity bus equipment are deposited in an

 

intercity bus equipment fund for appropriation for the purchase and

 

repair of intercity bus equipment. Security deposits from the lease

 

of state-owned intercity bus equipment not returned to the lessee

 

of the equipment under terms of the lease agreement are deposited

 

in an intercity bus equipment fund for appropriation for the repair

 

of intercity bus equipment. At the close of the fiscal year, any

 

funds remaining in the intercity bus equipment fund shall remain in

 

the fund and be carried forward into the succeeding fiscal year.

 

     Sec. 702. Money that is received by the state as repayment for

 

loans made for rail or water freight capital projects, and as a

 

result of the sale of property or equipment used or projected to be


 

used for rail or water freight projects shall be deposited in the

 

fund created by section 17 of the state transportation preservation

 

act of 1976, 1976 PA 295, MCL 474.67. At the close of the fiscal

 

year, any funds remaining in the rail freight fund shall remain in

 

the fund and be carried forward into the succeeding fiscal year.

 

     Sec. 706. The Detroit/Wayne County port authority shall issue

 

a complete operations assessment and a financial disclosure

 

statement. The operations assessment shall include operational

 

goals for the next 5 years and recommendations to improve land

 

acquisition and development efficiency. The report shall be

 

completed and submitted to the house of representatives and senate

 

appropriations subcommittees on transportation, the state budget

 

director, and the house and senate fiscal agencies by February 15

 

of each fiscal year for the prior fiscal year.

 

     Sec. 708. If funds appropriated in part 1 are used to provide

 

state-owned or state-leased buses to private intercity bus

 

carriers, the department shall charge not less than $1,000.00 per

 

bus per year for their use.

 

     Sec. 711. (1) From the funds appropriated in part 1 from the

 

comprehensive transportation fund for rail passenger service, the

 

department shall negotiate with a rail carrier to provide rail

 

service between Grand Rapids and Chicago and between Port Huron and

 

Chicago, consistent with the other provisions of this section.

 

     (2) The rail carrier shall, as a condition to receiving a

 

state operating subsidy, maintain a system to monitor, collect, and

 

resolve customer complaints and shall make the information

 

available to the department, the house and senate appropriations


 

subcommittees on transportation, the state budget director, and the

 

house and senate fiscal agencies.

 

     Sec. 714. The department, in cooperation with local transit

 

agencies, shall work to ensure that demand-response services are

 

provided throughout Michigan. The department shall continue to work

 

with local units of government to address the unmet transit needs

 

in Michigan.

 

     Sec. 742. For the fiscal year ending September 30, 2010, the

 

appropriation recommended by the governor to a street railway

 

pursuant to section 22 of 1951 PA 51, MCL 247.660E, is $0.

 

 

 

AERONAUTICS FUND

 

     Sec. 801. Except as provided for 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.

 

 

 

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 amount, 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 2.5% of the cost of any project under this section, unless a

 

total nonfederal share greater than 5% 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 bill 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. 902. (1) The director shall allocate lump-sum

 

appropriations made in this bill consistent with statutory

 

provisions and the purposes for which funds were appropriated.

 

Lump-sum allocations shall address priority program or facility

 

needs and may include, but are not limited to, design,

 

construction, remodeling and addition, special maintenance, major

 

special maintenance, energy conservation, and demolition.


 

     (2) The state budget director may authorize that funds

 

appropriated for lump-sum appropriations shall be available for no

 

more than 3 fiscal years following the fiscal year in which the

 

original appropriation was made. Any remaining balance from

 

allocations made in this section shall lapse to the fund from which

 

it was appropriated pursuant to the lapsing of funds as provided in

 

the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

 

     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.