SENATE BILL NO. 921EXECUTIVE BUDGET BILL February 24, 1988, Introduced by Senators HOFFMAN, STEIL, and MC MANUS and referred to the Committee on Appropriations. A bill to make appropriations for the department of transportation and certain transportation purposes for the fiscal year ending September 30, 1999; to provide for the imposition of fees; to provide for reports; to create certain funds; to prescribe certain powers and duties of certain state departments and officials; and to provide for the expenditure of the appropriations. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: Sec. 101. There is appropriated for the department of transportation and certain state purposes designated in this bill for the fiscal year ending September 30, 1999, from the following funds: DEPARTMENT OF TRANSPORTATION APPROPRIATIONS SUMMARY: Full-time equated unclassified positions . . . . . .6.0 Full-time equated classified positions . . 3,120.3 GROSS APPROPRIATION . . . . . . . . $ 2,680,282,600 Interdepartmental grant revenues: Total interdepartmental grants and intradepartmental transfers. . . . . . . 0 ADJUSTED GROSS APPROPRIATION . . . . . . $ 2,680,282,600 Federal revenues: Total federal revenues. . . . . . . 731,817,800 Special revenue funds: Total local revenues. . . . . . . . 5,300,000 Total private revenues. . . . . . . 0 Total other state restricted revenues . . . . . . 1,943,164,800 State general fund/general purpose. . . . . . . . $ 0 DEBT SERVICE State trunkline . . . . . . . $ 46,548,200 Trunkline bonds, series 1989A- EDF ($100,000,000) . . . . . . 11,469,600 Critical bridge . . . . . . . 3,000,000 Blue water bridge . . . . . . 2,367,100 Comprehensive transportation . . . . . . . . 23,078,900 GROSS APPROPRIATION . . . . . . . . $ 86,463,800 Appropriated from: Special revenue funds: Comprehensive transportation fund . . . . . . 23,078,900 Michigan transportation fund. . . . . . 14,469,600 State trunkline fund. . . . . . . . 46,548,200 Blue water bridge fund. . . . . . . 2,367,100 State general fund/general purpose. . . . . . . . $ 0 INTERDEPARTMENT AND STATUTORY CONTRACTS Michigan transportation fund (MTF) MTF grant to department of civil service. . . . . . . . $ 100,000 MTF grant to department of environmental quality. . . . . . . 780,000 MTF grant to department of management and budget . . . . . . . 349,400 MTF grant to department of state. . . . . . . 47,104,600 MTF grant to department of state police . . . . . . . . 613,600 MTF grant to department of treasury . . . . . . . 6,899,900 MTF grant to legislative auditor general. . . . . . . . 162,500 State trunkline fund (STF) STF grant to department of attorney general . . . . . . 2,246,400 STF grant to department of civil service. . . . . . . . 2,100,000 STF grant to department of management and budget . . . . . . . 578,600 STF grant to department of natural resources. . . . . . . . 36,300 STF grant to department of state police . . . . . . . . 6,087,500 STF grant to department of treasury . . . . . . . 18,800 STF grant to legislative auditor general. . . . . . . . 341,000 STF grant to Michigan jobs commission . . . . . . 3,978,600 State aeronautics fund (SAF) SAF grant to department of attorney general . . . . . . 109,800 SAF grant to department of civil service. . . . . . . . 56,300 SAF grant to department of management and budget . . . . . . . 43,000 SAF grant to department of treasury . . . . . . . 58,700 SAF grant to legislative auditor general. . . . . . . . 15,700 Comprehensive transportation fund (CTF) CTF grant to department of attorney general . . . . . . 116,600 CTF grant to department of civil service. . . . . . . . $ 112,700 CTF grant to department of management and budget . . . . . . . 27,200 CTF grant to department of treasury . . . . . . . 7,500 CTF grant to legislative auditor general. . . . . . . . 36,100 GROSS APPROPRIATION . . . . . . . . $ 71,980,800 Appropriated from: Special revenue funds: Comprehensive transportation fund . . . . . . 300,100 Michigan transportation fund. . . . . . 56,010,000 State aeronautics fund. . . . . . . 283,500 State trunkline fund. . . . . . . . 15,387,200 State general fund/general purpose. . . . . . . . $ 0 EXECUTIVE DIRECTION Full-time equated unclassified positions . . . . . .6.0 Full-time equated classified positions . . . .33.3 Unclassified salaries . . . . . . . $ 469,600 Commission audit--33.3 FTE positions. . . . . . . 2,800,200 GROSS APPROPRIATION . . . . . . . . $ 3,269,800 Appropriated from: Special revenue funds: State trunkline fund. . . . . . . . 3,269,800 State general fund/general purpose. . . . . . . . $ 0 ADMINISTRATIVE SERVICES Full-time equated classified positions . . . 135.7 Administration and data center--98.7 FTE positions. . . . . . . . $ 23,606,000 Building occupancy charges-property management . . . . . . . 3,889,100 Human resources--32.0 FTE positions . . . . . . . 2,452,900 Economic development administration-- 5.0 FTE positions. . . . . . . 500,700 Rent. . . . . . . . 1,940,000 Workers' compensation . . . . . . . 2,494,400 GROSS APPROPRIATION . . . . . . . . $ 34,883,100 Appropriated from: Special revenue funds: General fund restricted purpose . . . . . . . 129,800 State aeronautics fund. . . . . . . 808,600 Comprehensive transportation fund . . . . . . 1,232,300 Michigan transportation fund. . . . . . 424,900 State trunkline fund. . . . . . . . 32,287,500 State general fund/general purpose. . . . . . . . $ 0 BUREAU OF FINANCE AND ADMINISTRATION Full-time equated classified positions . . . 221.5 Administration--221.5 FTE positions . . . . . . . $ 20,056,600 Equipment rental. . . . . . . (5,022,700) GROSS APPROPRIATION . . . . . . . . $ 15,033,900 Appropriated from: Special revenue funds: Michigan transportation fund. . . . . . 1,093,400 State trunkline fund. . . . . . . . 13,940,500 State general fund/general purpose. . . . . . . . $ 0 BUREAU OF TRANSPORTATION PLANNING Full-time equated classified positions . . . 182.1 Administration--182.1 FTE positions . . . . . . . $ 15,332,200 Grants to regional planning councils. . . . . . . 488,800 GROSS APPROPRIATION . . . . . . . . $ 15,821,000 Appropriated from: Federal revenues: DOT-FHWA, highway research, planning and construction . . . . . . . 7,275,000 Special revenue funds: State aeronautics fund. . . . . . . 228,400 Comprehensive transportation fund . . . . . . 1,631,000 Michigan transportation fund. . . . . . 4,320,300 State trunkline fund. . . . . . . . 2,366,300 State general fund/general purpose. . . . . . . . $ 0 BUREAU OF HIGHWAYS Full-time equated classified positions . . 1,638.1 Engineering operations--821.7 FTE positions . . . . . . $ 33,095,400 Maintenance operations--80.0 FTE positions. . . . . . . 6,806,600 Program services--736.4 FTE positions . . . . . . 31,681,800 Testing services. . . . . . . (12,500,000) GROSS APPROPRIATION . . . . . . . . $ 59,083,800 Appropriated from: Federal revenues: DOT-FHWA, highway research, planning, and construction . . . . . . . 2,000,000 DOT-NHTSA, state and community highway safety . . . . . . . 146,800 Special revenue funds: Michigan transportation fund. . . . . . 2,253,900 State trunkline fund. . . . . . . . 54,683,100 State general fund/general purpose. . . . . . . . $ 0 HIGHWAY MAINTENANCE Full-time equated classified positions . . . 713.1 State trunkline operations--713.1 FTE positions . . . . . . $ 215,106,700 Equipment rental. . . . . . . (10,334,800) Sign and signal . . . . . . . (1,500,000) GROSS APPROPRIATION . . . . . . . . $ 203,271,900 Appropriated from: Special revenue funds: State trunkline fund. . . . . . . . 203,271,900 State general fund/general purpose. . . . . . . . $ 0 ROAD AND BRIDGE PROGRAMS State trunkline federal aid and road and bridge construction. . . . . . . . $ 860,450,200 Local federal aid and road and bridge construction . . . . . . 155,000,000 Gran ts to l ocal programs. . . . . . . . 33,000,000 Rail grade crossing. . . . . . . . 3,000,000 Critical bridge program. . . . . . . . . 5,250,000 County road commissions. . . . . . 544,569,200 Cities and villages 303,621,700 GROSS APPROPRIATION$1,904,891,100 Appropriated from: Federal revenues: DOT-FHWA, highway research, planning, and construction . . . . . . . 691,250,000 Special revenue funds: Local funds . . . . . . . 5,000,000 Blue water bridge fund. . . . . . . 10,000,000 Michigan transportation fund. . . . . . 889,190,900 State trunkline fund. . . . . . . . 309,450,200 State general fund/general purpose. . . . . . . . $ 0 BLUE WATER BRIDGE Full-time equated classified positions . . . .32.0 Blue water bridge operations--32.0 FTE positions. . . . . . . . $ 9,944,100 GROSS APPROPRIATION . . . . . . . . $ 9,944,100 Appropriated from: Special revenue funds: Blue water bridge fund. . . . . . . 9,944,100 State general fund/general purpose. . . . . . . . $ 0 TRANSPORTATION ECONOMIC DEVELOPMENT FUND Forest roads. . . . . . . $ 5,000,000 Rural county urban system . . . . . . . 2,500,000 Target industries/economic redevelopment. . . . . . . . 14,899,000 Urban county congestion . . . . . . 11,434,300 Rural county primary. . . . . . . . 11,434,300 GROSS APPROPRIATION . . . . . . . . $ 45,267,600 Appropriated from: Special revenue funds: General fund restricted purpose . . . . . . . 12,870,000 Michigan transportation fund. . . . . . 28,437,600 State trunkline fund. . . . . . . . 3,960,000 State general fund/general purpose. . . . . . . . $ 0 BUREAU OF AERONAUTICS Full-time equated classified positions . . . .56.0 Administration--56.0 FTE positions. . . . . . . . $ 8,048,500 Air service program . . . . . . . . 1,000,000 GROSS APPROPRIATION . . . . . . . . $ 9,048,500 Appropriated from: Special revenue funds: State aeronautics fund. . . . . . . 9,048,500 State general fund/general purpose. . . . . . . . $ 0 BUREAU OF URBAN AND PUBLIC TRANSPORTATION Full-time equated classified positions . . . 108.5 Administration--108.5 FTE positions . . . . . . . $ 8,286,900 GROSS APPROPRIATION . . . . . . . . $ 8,286,900 Appropriated from: Special revenue funds: Comprehensive transportation fund . . . . . . 6,785,400 Michigan transportation fund. . . . . . 1,501,500 State general fund/general purpose. . . . . . . . $ 0 BUS TRANSIT DIVISION; STATUTORY OPERATING Local bus operating . . . . . . . . $ 134,019,200 Nonurban operating/capital. . . . . . . 6,646,000 GROSS APPROPRIATION . . . . . . . . $ 140,665,200 Appropriated from: Federal revenues: DOT, federal transit act. . . . . . . . 6,546,000 Special revenue funds: Local funds . . . . . . . 100,000 Comprehensive transportation fund . . . . . . 134,019,200 State general fund/general purpose. . . . . . . . $ 0 INTERCITY PASSENGER AND FREIGHT Freight property management . . . . . . $ 2,000,000 Detroit/Wayne County port authority . . . . . . . 301,800 Intercity bus equipment . . . . . . 2,000,000 Rail passenger service. . . . . . . 6,977,300 Freight preservation and development. . . . . . . 7,500,000 Rail infrastructure loan program. . . . . . . 3,300,000 Intercity bus service development . . . . . . 2,050,000 Marine passenger services . . . . . . . 1,100,000 Terminal development. . . . . . . . 1,500,000 GROSS APPROPRIATION . . . . . . . . $ 26,729,100 Appropriated from: Federal revenues: DOT, federal transit act. . . . . . . . 1,000,000 DOT-FRA, local rail freight assistance. . . . . . 2,000,000 DOT-FRA, rail passenger/HSGT. . . . . . 3,000,000 Special revenue funds: Local funds . . . . . . . 50,000 Rail preservation fund. . . . . . . 2,000,000 Intercity bus equipment fund. . . . . . 500,000 Rail infrastructure fund. . . . . . . . 300,000 Comprehensive transportation fund . . . . . . 17,879,100 State general fund/general purpose. . . . . . . . $ 0 PUBLIC TRANSPORTATION DEVELOPMENT Specialized services. . . . . . . . $ 3,600,100 Municipal credit program. . . . . . . . 2,000,000 Bus capital . . . . . . . 29,400,000 Ride sharing. . . . . . . 330,700 Van pooling . . . . . . . 145,000 Bus property management . . . . . . 175,000 Service development and new technology. . . . . . 3,350,000 Planning grants . . . . . . . 150,000 Audit settlements . . . . . . 200,000 Region service coordination . . . . . . 3,000,000 Work first initiative . . . . . . . 3,291,200 GROSS APPROPRIATION . . . . . . . . $ 45,642,000 Appropriated from: Federal revenues: DOT, federal transit act. . . . . . . . 18,600,000 Special revenue funds: Local funds . . . . . . . 150,000 Comprehensive transportation fund . . . . . . 26,892,000 State general fund/general purpose. . . . . . . . $ 0 GENERAL SECTIONS Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources for fiscal year 1998-1999 is estimated at $1,943,164,800.00 in this bill and state spending from state sources paid to local units of government for fiscal year 1998-1999 is estimated at $1,088,200,100.00. The itemized statement below identifies appropriations from which spending to local units of government will occur: DEPARTMENT OF TRANSPORTATION Local grant program . . . . . . . . $ 33,000,000 Economic development fund . . . . . . . 30,368,600 Grants to cities and villages . . . . . . . . 303,621,700 Grants to county road commissions . . . . . . 544,569,200 Critical bridge program . . . . . . 5,250,000 Grants to regional planning councils. . . . . . . 488,800 Local bus operating . . . . . . . . 134,019,200 Bus capital . . . . . . . 29,400,000 Marine passenger service. . . . . . . . 1,100,000 Detroit/Wayne County port authority . . . . . . . 301,800 Local ride sharing operating grants . . . . . . . 330,700 Planning grants . . . . . . . 150,000 Municipal credit program. . . . . . . . 2,000,000 Specialized services . . . . . . 3,600,100 TOTAL . . . . . . . $ 1,088,200,100 (2) If it appears to the principal executive officer of a department or branch that state spending to local units of government will be less than the amount that was projected to be expended under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the state budget director. Sec. 202. The expenditures and funding sources authorized under this bill are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594. Sec. 203. As used in this bill: (a) "CTF" means comprehensive transportation fund. (b) "Department" means the department of transportation. (c) "DOT" means the United States department of transportation. (d) "DOT-FHWA" means DOT, federal highway administration. (e) "DOT-FRA" means DOT, federal railroad administration. (f) "DOT-FRA, rail passenger/HSGT" means DOT, federal railroad administration, high-speed ground transportation. (g) "DOT-NHTSA" means DOT, national highway traffic safety administration. (h) "EDF" means economic development fund. (i) "FTE" means full-time equated. (j) "IDG" means interdepartmental grant. (k) "MDTR" means Michigan department of treasury. (l) "MTF" means Michigan transportation fund. (m) "RIF" means recreation improvement fund. (n) "SAF" means state aeronautics fund. (o) "SEDF" means state economic development fund. (p) "STF" means state trunkline fund. Sec. 204. (1) Beginning October 1, 1998, there is a hiring freeze imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees or prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from 1 position to another within a department or to positions that are funded with 80% or more federal or restricted funds. (2) The state budget director shall grant exceptions to this hiring freeze when the director believes that the hiring freeze will result in the state department or agency being unable to deliver basic services. The state budget director shall report by the fifteenth of each month to the chairpersons of the senate and house appropriations committees the number of exclusions to the hiring freeze approved during the previous month and the justification for the exclusion. Sec. 205. The department of civil service shall bill departments and/or agencies at the end of the first fiscal quarter for the 1% 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 section 101, there is appropriated an amount not to exceed $40,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. (2) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $40,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. (3) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $1,000,000.00 for local con- tingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. (4) In addition to the funds appropriated in section 101, there is appropriated an amount not to exceed $1,000,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. Sec. 207. (1) The department shall submit to the department of management and budget, the house and senate appropriations committees, the house and senate fiscal agencies, and the house and senate standing committees having jurisdiction over technology issues, periodic reports on the department's efforts to change the department's computer software and hardware as necessary to perform properly in the year 2000 and beyond. These reports shall identify actual progress in comparison to the department's approved work plan for these efforts. (2) The department may present progress billings to the department of management and budget for the costs incurred in changing computer software and hardware as necessary to perform properly in the year 2000 and beyond. At the time progress billings are presented for reimbursement, the department shall identify and forward as appropriate the funding sources that should support the work performed. DEPARTMENTAL SECTIONS Sec. 301. The department may establish a fee schedule and collect fees sufficient to cover the costs to issue the permits that the department is authorized by law to issue upon request, and for which fees are not otherwise stipulated by law. A bridge authority shall hold 3 public hearings on a change in any toll charged by the authority at least 30 days before the toll change will become effective. Two of the hearings shall be held within 5 miles of the bridge over which the bridge authority has jurisdiction. One hearing shall be held in Lansing. Sec. 302. 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. 303. The department may permit space on public passenger transportation properties to be occupied by public or private tenants on a competitive market rate basis. The department may require that revenue from the tenants be placed in an account to be used to pay the costs to maintain and improve the property. Sec. 304. To facilitate an informed and cooperative relationship between the transportation commission and the legislature, 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 subcommittees on transportation, to the house and senate fiscal agencies,and the state budget director. Sec. 305. At the close of the fiscal year ending September 30, 1999, any unencumbered and unexpended balance in the state trunkline fund shall remain in the state trunkline fund and shall be used for federal aid road and bridge programs pursuant to section 11(1)(d) of 1951 PA 51, MCL 247.661. Sec. 306. (1) From funds appropriated in section 101, the department may establish a transportation infrastructure program and grant or loan funds in accordance with 1951 PA 51, MCL 247.661, and the state infrastructure bank program of the United States department of transportation. These funds may be augmented with additional private funds in the establishment of a revolving, self-sustaining resource for financing transportation infrastructure. (2) Money that is received by the state as repayment of transportation infrastructure program loans, or other reimbursement or revenue received by the state as a result of projects funded by the transportation infrastructure program, will be deposited in the transportation infrastructure program fund for projects under the transportation infrastructure program. Sec. 307. From funds appropriated in section 101, money received by the department in payment for advance purchase right-of-way, either as a result of project programming from federal, state, local, or private sources, or from sale as excess property, will be restricted for the purchase of other advanced purchase right-of-way. At the end of the fiscal year, unexpended funds shall remain in the advanced purchase right-of-way fund and shall be used for this purpose in the succeeding fiscal year. MICHIGAN TRANSPORTATION FUND Sec. 401. The money received under the motor carrier act, 1933 PA 254, MCL 475.1 to 479.43, and not appropriated to the department of consumer and industry services or the department of state police, is deposited in the Michigan transportation fund. Sec. 402. 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. 403. If a county road commission or county board of commis- sioners, as applicable, has entered into a contract with the department to eliminate or cut roadside weeds and if the weeds were eliminated or cut by a city or township after the city or township had requested the county to perform its contractual obligation, then the department shall reimburse the city or township and shall deduct that amount from the funds appropriated to the county. This action shall require prior approval of the department. The department shall consult with the department of agriculture prior to use of plant growth retardant on freeway or highway rights-of-way. Sec. 404. (1) The funds appropriated in section 101 for the eco- nomic development programs shall not lapse at the end of the fiscal year but shall carry forward each fiscal year for the purposes for which appropriated in accordance with 1987 PA 231, MCL 247.901 to 247.913. (2) Interest earned in the department of transportation economic development fund shall remain in the fund and shall be allocated to the respective programs based on actual interest earned at the end of each fiscal year. (3) The department of transportation economic development fund may receive and expend federal, local, or private funds or restricted source funds such as interest earnings for projects that are consistent with the programmatic mission of the fund in addition to funds appropriated in section 101. Sec. 405. (1) Funds from the Michigan transportation fund (MTF) shall be distributed to the comprehensive transportation fund (CTF), the economic development fund (EDF), the recreational improvement fund (RIF), and the state trunkline fund (STF), in accordance with this bill and part 711 (recreation improvement fund) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.71101 to 324.71108, and may only be used as specified in this act, 1951 PA 51, MCL 247.651 to 247.675, and part 711 (recreation improvement fund) of the natural resources and environmental protection act, 1994 PA 451, MCL 324.71101 to 324.71108. (2) The amounts appropriated and transferred to various state agencies from section 101 shall be expended from the transportation funds pursuant to annual contracts between the department and state agencies providing tax and fee collection and other services applicable to transportation funds. The contracts shall be executed prior to the transfer of these funds. The contracts shall provide, but are not limited to, the following data applicable to each state agency: (a) Estimated costs to be recovered from transportation funds. (b) Description of services financed with transportation funds. (3) If the spending authorization accounts also are to be used for financing other than transportation fund services, the contracts shall include detailed cost allocation methods that are appropriate to the type of services being provided and the activities financed and supporting rationale for the portion of costs allocated to transportation funds. (4) At the close of each fiscal year and before April 1, each state agency shall submit a written report to the state budget director stating by spending authorization account the amount of estimated funds contracted with the department, the amount of funds expended, and the amount of funds returned to the transportation funds. A copy of the report shall be submitted to the auditor general and the report shall be subject to audit by the auditor general. (5) The department and the state agencies with which the department contracts in the manner provided in subsection (2) shall work together to explore methods of minimizing lapses or shortfalls in grants from transportation funds. Sec. 406. Of the amount appropriated in section 101 from the Michigan transportation fund to the department of state, $186,600.00 represents the additional cost of issuing specialized license plates for veterans and national guard members, as included in 1989 PAs 16, 17, 18, and 19, MCL 257.803i, 257.803j, 257.803k, and 257.803l. The department of state shall prepare an annual report on the number of and the additional costs associated with the veteran license plates to the department of transportation, the state budget director, and the chairpersons of the house and senate appropriations subcommittees on transportation. Any unspent funds based on these annual reports shall lapse to the Michigan transportation fund and be distributed in accordance with 1951 PA 51, MCL 247.651 to 247.675. Sec. 407. (1) Of the amount appropriated in section 101 from the Michigan transportation fund to the department of state, $187,600.00 represents the additional cost of issuing generic license plates for nonprofit fraternal or public service organizations, as included in section 803m of the Michigan vehicle code, 1949 PA 300, MCL 257.803m. (2) The department of state shall prepare an annual report on the number of, and the additional costs associated with, the generic license plates to the state transportation department, the state budget director, the house and senate appropriations subcommittees on transportation, and the house and senate fiscal agencies. (3) Any unspent funds based on these annual reports shall lapse to the Michigan transportation fund to be distributed in accordance with 1951 PA 51, MCL 247.651 to 247.675. COMPREHENSIVE TRANSPORTATION FUND Sec. 501. Money that is returned to the state as repayment for a loan for intercity bus equipment is not money to be deposited in the comprehensive transportation fund under section 10b of 1951 PA 51, MCL 247.660b, but is money that is deposited in an intercity bus equipment fund for appropriation for the purchase and repair of intercity bus equipment. Proceeds received by the state from the sale of intercity bus equipment are deposited in an intercity bus equipment fund for appropriation for the purchase and repair of intercity bus equipment. Security deposits from the lease of state-owned intercity bus equipment not returned to the lessee of the equipment under terms of the lease agreement are deposited in an intercity bus equipment fund for appropriation for the repair of intercity bus equipment. Sec. 502. Money that is received by the state as repayment for loans made for rail or water freight capital projects, and as a result of the sale of property or equipment used or projected to be used for rail or water freight projects shall be deposited in the fund created by section 17 of the state transportation preservation act of 1976, 1976 PA 295, MCL 474.67. Sec. 503. (1) The departments of community health and transporta- tion, the office of services to the aging within the department of community health, and the family independence agency shall develop a system to identify and collect the following information annually for each county: (a) All operational and capital costs of services provided, con- tracted for, or purchased, to transport clients or program participants within the county, including all other funds received and expended for those purposes by the state department. (b) Population groups that utilize transportation services by a percentage of the total number of persons who utilize the services. (c) Services accessed through transportation provided by percentages of the total dollar amount expended for the services. (d) All funding sources for transportation and amounts from each source. (e) If known, provide the existence of interagency or countywide transportation planning or coordination, and the extent to which each state department participates. (2) The information specified in subsection (1) shall be submitted to the department of transportation. The department of transportation shall compile and report the information it has collected and received on or before December 31 of the immediately succeeding state fiscal year to the house and senate appropriations subcommittees on transportation and the state budget director. (3) The report specified in subsection (2) shall include, but not be limited to, all of the following: (a) Current efforts to coordinate or consolidate transportation services provided by human service agencies. (b) Areas where coordination or consolidation of transportation services will produce cost savings. (c) Legislation needed to facilitate the coordination and consolidation of transportation services. (d) Steps to implement policy to more efficiently coordinate and consolidate transportation services. (e) The use of the amount appropriated in section 101 to regional service coordination. Sec. 504. From the funds appropriated in section 101, $3,300,000.00 is allocated for the department to establish a rail infrastructure loan program. The program shall provide noninterest bearing loans for rail infrastructure improvements. The department shall evaluate loan applications according to the relative merit of the project in conjunction with program goals. The transportation commission shall approve the loans. The loans shall fund not less than 90% of the rail portion of project costs, and the loan repayment period shall not exceed 10 years. Local governments, railroads, and current or potential users of freight railroad services are eligible applicants. At the end of the fiscal year, unexpended funds shall remain in the rail infrastructure loan program and shall be available to be allocated for the purposes of the program in the succeeding fiscal year. Money that is received by this state as repayment for rail infrastructure loans made pursuant to this program shall remain within the rail infrastructure loan program and shall be allocated for the purposes of the program. The state's total contribution to the rail infrastructure loan program shall not exceed $15,000,000.00. Sec. 505. In addition to the $3,291,200.00 appropriated in section 101 for the work first initiative, the department shall maintain current funding support for this initiative. AERONAUTICS FUND Sec. 601. At the close of the fiscal year ending September 30, 1999, any unobligated and unexpended balance in the state aeronautics fund created in the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208, shall lapse to the state aeronautics fund and be appropriated by the legislature in the immediately succeeding fiscal year. final page