HOUSE BILL No. 4312
February 18, 1999, Introduced by Reps. Scranton, Jellema, Pappageorge, Jelinek, Mead, Kukuk, Caul, Toy, Godchaux, Byl, Geiger and Jansen and referred to the Committee on Appropriations.
EXECUTIVE BUDGET BILL
A bill to make appropriations for the state transportation department and certain transportation purposes for the fiscal year ending September 30, 2000; 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, 2000, from the funds indicated in this part. The following is a summary of the appropriations in this part:
DEPARTMENT OF TRANSPORTATION
APPROPRIATION SUMMARY:
Full-time equated unclassified positions 6.0
Full-time equated classified positions 3,176.3
GROSS APPROPRIATION $ 2,810,730,900
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 10,459,500
ADJUSTED GROSS APPROPRIATION $ 2,800,271,400
Federal revenues:
Total federal revenues 831,671,000
Special revenue funds:
Total local revenues 5,300,000
Total private revenues 0
Total other state restricted revenues 1,963,300,400
State general fund/general purpose $ 0
Sec. 102. DEBT SERVICE
State trunkline $ 35,904,600
Trunkline bonds, series 1989A-EDF ($100,000,000) 6,608,300
Critical bridge 3,000,000
Blue water bridge 2,311,900
Comprehensive transportation 21,209,300
GROSS APPROPRIATION $ 69,034,100
Appropriated from:
Special revenue funds:
Blue water bridge fund 2,311,900
Comprehensive transportation fund 21,209,300
Michigan transportation fund 9,608,300
State trunkline fund 35,904,600
State general fund/general purpose $ 0
Sec. 103. INTERDEPARTMENT AND STATUTORY CONTRACTS
MICHIGAN TRANSPORTATION FUND (MTF)
MTF grant to department of environmental quality $ 813,000 MTF grant to department of state 56,830,800
MTF grant to legislative auditor general 101,800 MTF grant to department of attorney general 2,475,200
STATE TRUNKLINE FUND (STF)
STF grant to department of civil service 1,320,000 STF grant to department of management and budget 768,100 STF grant to department of natural resources 37,500 STF grant to department of state police 6,305,700 STF grant to department of treasury 24,300 STF grant to legislative auditor general 381,100 STATE AERONAUTICS FUND (SAF)
SAF grant to department of attorney general 114,900 SAF grant to department of civil service 50,000 SAF grant to department of management and budget 18,200
SAF grant to department of treasury 61,500
SAF grant to legislative auditor general 15,400
COMPREHENSIVE TRANSPORTATION FUND (CTF)
CTF grant to department of civil service 95,000
CTF grant to department of management and budget 38,600
CTF grant to department of treasury 8,900
CTF grant to legislative auditor general 38,900
GROSS APPROPRIATION $ 69,498,900
Appropriated from:
Special revenue funds:
Comprehensive transportation fund 181,400
Michigan transportation fund 60,220,800
State aeronautics fund 260,000
State trunkline fund 8,836,700
State general fund/general purpose $ 0
Sec. 104. EXECUTIVE DIRECTION
Full-time equated unclassified positions 6.0
Full-time equated classified positions 33.3
Unclassified salaries $ 483,700
Commission audit--33.3 FTE positions 2,911,900
GROSS APPROPRIATION $ 3,395,600
Appropriated from:
Special revenue funds:
State trunkline fund 3,395,600
State general fund/general purpose $ 0
Sec. 105. ADMINISTRATIVE SERVICES
Full-time equated classified positions 138.7
Administration and data center--103.7 FTE positions $ 31,190,500
Building occupancy charges - property management 4,582,400
Human resources--30.0 FTE positions 2,402,200
Economic development administration--5.0
FTE positions 407,800
Rent 1,940,000
Worker's compensation 2,528,600
GROSS APPROPRIATION $ 43,051,500
Appropriated from:
Federal revenues:
DOT-FHWA, highway research, planning, and
construction 1,000,000
Special revenue funds:
Comprehensive transportation fund 1,086,200
Michigan transportation fund 435,600
State aeronautics fund 631,900
State trunkline fund 39,897,800
State general fund/general purpose $ 0
Sec. 106. BUREAU OF FINANCE AND ADMINISTRATION
Full-time equated classified positions 255.5
Administration--255.5 FTE positions $ 20,355,500
GROSS APPROPRIATION $ 20,355,500
Appropriated from:
Special revenue funds:
Michigan transportation fund 1,048,100
State trunkline fund 19,307,400
State general fund/general purpose $ 0
Sec. 107. BUREAU OF TRANSPORTATION PLANNING
Full-time equated classified positions 185.1
Administration--185.1 FTE positions $ 20,674,700
Grants to regional planning councils 488,800
GROSS APPROPRIATION $ 21,163,500
Appropriated from:
Federal revenues:
DOT-FHWA, highway research, planning, and
construction 11,041,000
Special revenue funds:
Comprehensive transportation fund 1,679,500
Michigan transportation fund 5,755,200
State aeronautics fund 267,000
State trunkline fund 2,420,800
State general fund/general purpose $ 0
Sec. 108. BUREAU OF HIGHWAYS
Full-time equated classified positions 1,658.1
Engineering operations--826.3 FTE positions $ 23,250,900
Maintenance operations--78.0 FTE positions 6,904,700
Program services--753.8 FTE positions 35,431,100
GROSS APPROPRIATION $ 65,586,700
Appropriated from:
Interdepartmental grants and intradepartmental
transfers:
IDT, intradepartmental charges 207,500
Federal revenues:
DOT-FHWA, highway research, planning, and
construction 3,035,000
Special revenue funds:
Michigan transportation fund 2,182,200
State trunkline fund 60,162,000
State general fund/general purpose $ 0
Sec. 109. HIGHWAY MAINTENANCE
Full-time equated classified positions 707.1
State trunkline operations--707.1 FTE positions $ 228,899,400
GROSS APPROPRIATION $ 228,899,400
Appropriated from:
Interdepartmental grants and intradepartmental
transfers:
IDT, intradepartmental charges 10,252,000
Special revenue funds:
State trunkline fund 218,647,400
State general fund/general purpose $ 0
Sec. 110. ROAD AND BRIDGE PROGRAMS
State trunkline federal aid and road and
bridge construction $ 898,203,700
Local federal aid and road and bridge
construction 195,827,000 Grants to local programs 33,000,000
Rail grade crossing 3,000,000
Critical bridge program 5,250,000
County road commissions 558,320,300
Cities and villages 311,288,600
GROSS APPROPRIATION $ 2,004,889,600
Appropriated from:
Federal revenues:
DOT-FHWA, highway research, planning, and
construction 785,449,000
Special revenue funds:
Local funds 5,000,000
Michigan transportation fund 910,608,900
State trunkline fund 303,831,700
State general fund/general purpose $ 0
Sec. 111. BLUE WATER BRIDGE
Full-time equated classified positions 33.0
Blue water bridge operations--33.0 FTE positions $ 10,083,500
GROSS APPROPRIATION $ 10,083,500
Appropriated from:
Special revenue funds:
Blue water bridge fund 10,083,500
State general fund/general purpose $ 0
Sec. 112. TRANSPORTATION ECONOMIC DEVELOPMENT FUND
Forest roads $ 5,040,000
Rural county urban system 2,500,000
Target industries/economic redevelopment 16,629,500
Urban county congestion 6,564,700
Rural county primary 6,564,700
GROSS APPROPRIATION $ 37,298,900
Appropriated from:
Special revenue funds:
Michigan transportation fund 33,298,900
State trunkline fund 4,000,000
State general fund/general purpose $ 0
Sec. 113. BUREAU OF AERONAUTICS
Full-time equated classified positions 56.0
Administration--56.0 FTE positions $ 6,732,100
Air service program 1,000,000
GROSS APPROPRIATION $ 7,732,100
Appropriated from:
Special revenue funds:
State aeronautics fund 7,732,100
State general fund/general purpose $ 0
Sec. 114. BUREAU OF URBAN AND PUBLIC TRANSPORTATION
Full-time equated classified positions 109.5
Administration--109.5 FTE positions $ 8,650,700
GROSS APPROPRIATION $ 8,650,700
Appropriated from:
Special revenue funds:
Comprehensive transportation fund 7,021,500
Michigan transportation fund 1,629,200
State general fund/general purpose $ 0
Sec. 115. BUS TRANSIT DIVISION; STATUTORY OPERATING
Local bus operating $ 144,575,400
Nonurban operating/capital 6,646,000
GROSS APPROPRIATION $ 151,221,400
Appropriated from:
Federal revenues:
DOT, federal transit act 6,546,000
Special revenue funds:
Comprehensive transportation fund 144,575,400
Local funds 100,000
State general fund/general purpose $ 0
Sec. 116. INTERCITY PASSENGER AND FREIGHT
Freight property management $ 2,000,000
Detroit/Wayne County port authority 301,800
Intercity bus equipment 2,824,500
Rail passenger service 8,812,700 Freight preservation and development 7,500,000
Rail infrastructure loan program 2,000,000
Intercity bus service development 2,025,500
Marine passenger service 800,000
Terminal development 1,000,000
GROSS APPROPRIATION $ 27,264,500
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:
Comprehensive transportation fund 18,714,500 Intercity bus equipment fund 500,000
Local funds 50,000
Rail preservation fund 2,000,000
State general fund/general purpose $ 0
Sec. 117. 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 125,000
Service development and new technology 1,675,000
Planning grants 150,000 Audit settlements 200,000
Regional service coordination 1,000,000
Work first initiative 3,979,200
GROSS APPROPRIATION $ 42,605,000
Appropriated from:
Federal revenues:
DOT, federal transit act 18,600,000
Special revenue funds:
Comprehensive transportation fund 23,855,000
Local funds 150,000
State general fund/general purpose $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending under part 1 for fiscal year 1999-2000 is $1,963,300,400.00 and state appropriations to be paid to local units of government are as follows:
DEPARTMENT OF TRANSPORTATION
Local grant program $ 33,000,000
Economic development fund 20,669,400
Grants to cities and villages 311,288,600
Grants to county road commissions 558,320,300
Critical bridge program 5,250,000
Grants to regional planning councils 488,800
Local bus operating 144,575,400
Bus capital 12,000,000
Marine passenger service 800,000
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 payments to local units of government $ 1,092,775,100
(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. (1) Beginning October 1, 1999, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from one 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 state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services.
Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.
Sec. 205. As used in this bill:
(a) "CTF" means comprehensive transportation fund.
(b) "Department" means the Michigan department of transportation.
(c) "DOT" means the United States department of transportation.
(d) "DOT-FHWA" means DOT federal highway administration.
(e) "DOT-FRA" means DOT federal railroad administration.
(f) "DOT-FRA, rail passenger/HSGT" means DOT federal railroad administration, high-speed ground transportation.
(g) "EDF" means economic development fund.
(h) "FTE" means full-time equated.
(i) "IDG" means interdepartmental grant.
(j) "IDT" means intradepartmental transfer.
(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) "STF" means state trunkline fund.
Sec. 206. (1) In addition to the funds appropriated in part 1, 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 part 1, there is appropriated an amount not to exceed $40,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $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 pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
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. The department shall prepare an official transportation map that shall be distributed without charge.
Sec. 303. 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. 304. 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. 305. The department shall aggressively pursue compliance with contract specifications for construction and maintenance of state highways. The department shall identify contractors who fail to meet minimum standards and will actively pursue remuneration efforts. Collections shall be deposited into the appropriate fund accounts.
Sec. 306. The department shall continue its efforts to reduce administrative costs and provide the maximum funding possible for construction projects.
Sec. 307. The department shall not use funds appropriated under part 1 on behalf of a local governmental unit to pay the amount required for that local governmental unit to participate in the federal advance construct program.
Sec. 308. (1) At the close of the fiscal year ending September 30, 2000, any unencumbered and unexpended balance in the state trunkline fund shall remain in the state trunkline fund and shall carry forward and be appropriated for federal aid road and bridge programs for projects contained in the annual state transportation program.
Sec. 309. (1) From funds appropriated in part 1, the department may increase the 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 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 funds remaining in the state infrastructure bank fund shall remain in the fund and be carried forward into the succeeding fiscal year.
Sec. 310. From funds appropriated in part 1, money received by the department in payment for advanced 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.
Sec. 311. The department shall coordinate with the Michigan
information center on the development of right-of-way mapping books.
FEDERAL
Sec. 401. (1) Twenty-three to twenty-seven percent of the remaining DOT-FHWA highway research, planning, and construction federal funds appropriated in section 110 shall be allocated to programs administered by local jurisdictions after deduction of the following:
(a) Funds that are specifically allocated at the federal level to the state or local jurisdictions.
(b) Funds allocated by the department to the state and to local jurisdictions through a competitive process.
(2) Federal aid excluded from the calculation of funding allocated to programs administered by local jurisdictions in subsection (1) includes, but is not limited to, congestion mitigation and air quality funds, federal bridge funds, transportation enhancement funds, funds distributed at the discretion of the United States secretary of transportation, and congressionally designated funds.
(3) The funds shall be distributed to eligible local agencies for transportation purposes in a manner consistent with state and federal law.
(4) The department will attempt to allocate federal aid to highways distributed to local jurisdictions in subsection (1) in a manner that produces a 25% average allocation of applicable funds to programs for local jurisdictions in each fiscal year through the fiscal year ending September 30, 2005. Beginning in the fiscal year ending September 30, 1999, the average allocation of applicable federal aid to highway funds to programs for local jurisdictions shall be the average of the amount distributed to local jurisdictions under subsection (1) and similarly calculated distributions in each succeeding fiscal year.
(5) The allocation percentage described in subsection (1) shall be
adjusted to reflect any voluntary agreements made by the department
with local jurisdictions regarding the transfer of federal aid
eligible roadways or the state buyout of local federal aid.
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 consumer and industry services 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. The department shall reimburse a city or township that has received prior approval to eliminate or cut roadside weeds due to negligence on the part of a county or private contractor in performing its contractual obligations and shall deduct that amount from the funds appropriated to the county or paid to the contractor involved.
Sec. 504. (1) The funds appropriated in part 1 for the economic 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 part 1.
Sec. 505. (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 bill, 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 part 1 shall be expended from the transportation funds pursuant to annual contracts between the department and state agencies providing tax and fee collection and other services applicable to transportation. 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.
Sec. 506. Of the amount appropriated in part 1 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, the state budget director, the house and senate fiscal agencies, 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. 507. (1) Of the amount appropriated in part 1 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 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.
Sec. 508. (1) Commemorative and specialty license plate fee revenue collected by the department of state and deposited into the Michigan transportation fund is authorized for expenditure by the department of state up to the amount of revenue collected, but not to exceed $9,353,300.00, the amount appropriated to the department of state in part 1 to administer the commemorative and specialty license plate program pursuant to section 225 of the Michigan vehicle code, 1949 PA 300, MCL 257.225.
(2) Commemorative and specialty license plate fee revenue collected by the department of state and deposited in the Michigan transportation fund in addition to that appropriated in part 1 to the department of state shall be available for other Michigan transportation fund-supported programs.
STATE TRUNKLINE FUND
Sec. 601. Of the amount of state funds appropriated for road and
bridge projects under this bill, the department, counties, and cities
and villages shall, whenever possible, secure warranties for
contracted construction work.
Sec. 602. From the amounts appropriated in part 1 for urban county congestion from the transportation economic development fund for the fiscal year ending September 30, 2000, $2,000,000.00 may be used for the purpose of matching, at not more than 50%, private and local funds for the AAA Michigan road improvement program. The AAA Michigan road improvement program, a public/private partnership, was established to fund or assist funding road improvements in urban areas to reduce the number and severity of crashes at high crash locations.
Sec. 603. From the amounts appropriated in part 1 for forest roads from the transportation economic development fund in the fiscal year ending September 30, 2000, $40,000.00 shall be used for the purpose of establishing truck inspection stations.
COMPREHENSIVE TRANSPORTATION FUND
Sec. 701. 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. 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.
Sec. 703. The appropriation in part 1 for van pooling shall be administered by the department through grants to eligible authorities and eligible governmental agencies to insure coordination between van and car pooling programs and the transit systems operated by the eligible authorities and eligible governmental agencies.
Sec. 704. From the funds appropriated in part 1, $2,000,000.00 is allocated for 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. 705. Appropriated in part 1 is $3,979,200.00 for the work first initiative. Funding earmarked for the work first initiative is in addition to current program support for this initiative. Sec. 706. The Detroit/Wayne County port authority shall issue a complete operations assessment and a financial disclosure statement to the department by December 15, 2000.
Sec. 707. For the fiscal year ending September 30, 2000, each eligible authority and each eligible governmental agency which provides public transportation services in urbanized areas with a Michigan population of less than or equal to 100,000 and nonurbanized areas under section 5311 of title 49 of the United States Code, 49 U.S.C. 5311, shall receive a grant of up to 60% of its eligible operating expenses. Each eligible authority and each eligible government agency which provides public transportation services in urbanized areas with a Michigan population of greater than 100,000 under section 5311 of title 49 of the United States Code, 49 U.S.C. 5311, shall receive a grant of up to 50% of its eligible operating expenses.
Sec. 708. Of the funds appropriated in part 1 for local bus operating and marine passenger services, the department shall not allocate any funds to pay the operating cost of services provided by water vehicles.
AERONAUTICS FUND
Sec. 801. At the close of the fiscal year ending September 30, 2000, 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.