SENATE BILL No. 979
EXECUTIVE BUDGET BILL
February 3, 2000, Introduced by Senators HOFFMAN, GOSCHKA, YOUNG and JOHNSON
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, 2001; 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, certain state institutions of higher education, 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, 2001, 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 $ 2,984,764,600
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers 10,459,500
ADJUSTED GROSS APPROPRIATION $ 2,974,305,100
Federal revenues:
Total federal revenues 918,449,000
Special revenue funds:
Total local revenues 5,700,000
Total private revenues 0
Total other state restricted revenues 2,050,156,100
State general fund/general purpose $ 0
Sec. 102. DEBT SERVICE
State trunkline $ 35,900,800
Trunkline bonds, series 1989A-EDF
($100,000,000) 6,606,900
Critical bridge 3,000,000
Blue water bridge 2,308,500
Comprehensive transportation 21,697,900
GROSS APPROPRIATION $ 69,514,100
Appropriated from:
Special revenue funds:
Comprehensive transportation fund 21,697,900
Economic development fund 6,606,900
Michigan transportation fund 3,000,000
State trunkline fund 35,900,800
Blue water bridge fund 2,308,500
State general fund/general purpose $ 0
Sec. 103. INTERDEPARTMENT AND STATUTORY CONTRACTS
Michigan transportation fund (MTF)
MTF grant to department of environmental quality. $ 855,500
MTF grant to department of state 55,668,000
MTF grant to legislative auditor general 132,400
MTF grant to attorney general 2,590,400
State trunkline fund (STF)
STF grant to department of civil service 1,280,000
STF grant to department of management and budget 889,500
STF grant to department of state police 6,574,200
STF grant to department of treasury 32,200
STF grant to legislative auditor general 362,100
State aeronautics fund (SAF)
SAF grant to department of attorney general 119,800
SAF grant to department of civil service 50,000
SAF grant to department of management and budget 26,600
SAF grant to department of treasury 63,900
SAF grant to legislative auditor general 31,100
Comprehensive transportation fund (CTF)
CTF grant to department of civil service 90,000
CTF grant to department of management and budget 50,200
CTF grant to department of treasury 4,900
CTF grant to legislative auditor general 47,600
GROSS APPROPRIATION $ 68,868,400
Appropriated from:
Special revenue funds:
Comprehensive transportation fund 192,700
Michigan transportation fund 59,246,300
State aeronautics fund 291,400
State trunkline fund 9,138,000
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 $ 511,600 State transportation commission (per diem payments) 7,200 Commission audit--33.3 FTE positions 2,888,600 GROSS APPROPRIATION $ 3,407,400
Appropriated from:
Special revenue funds:
State trunkline fund 3,407,400
State general fund/general purpose $ 0
Sec. 105. ADMINISTRATIVE SERVICES
Full-time equated classified positions 146.7
Administration and data center--108.7 FTE positions $ 27,462,600 Property management 6,690,600
Human resources--33.0 FTE positions 2,563,500
Economic development administration--5.0 FTE positions 500,700
Worker's compensation 2,696,000
GROSS APPROPRIATION $ 39,913,400
Appropriated from:
Special revenue funds:
Economic development fund 537,800
State aeronautics fund 678,300
Comprehensive transportation fund 1,167,600
Michigan transportation fund 70,400
State trunkline fund 37,459,300
State general fund/general purpose $ 0
Sec. 106. BUREAU OF FINANCE AND ADMINISTRATION
Full-time equated classified positions 254.5
Administration--254.5 FTE positions $ 20,486,700
GROSS APPROPRIATION $ 20,486,700
Appropriated from:
Special revenue funds:
Michigan transportation fund 1,086,400
State trunkline fund 19,400,300
State general fund/general purpose $ 0
Sec. 107. BUREAU OF TRANSPORTATION PLANNING
Full-time equated classified positions 185.1
Administration--185.1 FTE positions $ 27,519,800
Grants to regional planning councils 488,800
GROSS APPROPRIATION $ 28,008,600
Appropriated from:
Federal revenues:
Federal revenues 16,200,000
Special revenue funds:
State aeronautics fund 300,500
Comprehensive transportation fund 1,890,300
Michigan transportation fund 5,755,200
State trunkline fund 3,862,600
State general fund/general purpose $ 0
Sec. 108. BUREAU OF HIGHWAYS
Full-time equated classified positions 1,655.2
Engineering operations--820.1 FTE positions $ 32,980,200
Maintenance operations--78.0 FTE positions 6,918,300
Program services--757.1 FTE positions 37,294,200
GROSS APPROPRIATION $ 77,192,700
Appropriated from:
Interdepartmental grant revenues:
IDT, intradepartmental charges 207,500
Federal revenues:
Federal revenues 5,000,000
Special revenue funds:
Michigan transportation fund 3,950,000
State trunkline fund 68,035,200
State general fund/general purpose $ 0
Sec. 109. HIGHWAY MAINTENANCE
Full-time equated classified positions 704.0
State trunkline operations--704.0 FTE positions $ 235,229,000
GROSS APPROPRIATION $ 235,229,000
Appropriated from:
Interdepartmental grant revenues:
IDT, intradepartmental charges 10,252,000
Special revenue funds:
State trunkline fund 224,977,000
State general fund/general purpose $ 0
Sec. 110. ROAD AND BRIDGE PROGRAMS
State trunkline federal aid and road and bridge
construction $ 933,730,400
Local federal aid and road and bridge
construction 214,803,000
Grants to local programs 33,000,000
Rail grade crossing 3,000,000
Critical bridge program 5,750,000
County road commissions 589,621,700
Cities and villages 328,740,500
GROSS APPROPRIATION $ 2,108,645,600
Appropriated from:
Federal revenues:
Federal revenues 841,549,000
Special revenue funds:
Local funds 5,000,000
Michigan transportation fund 959,362,200
State trunkline fund 302,734,400
State general fund/general purpose $ 0
Sec. 111. BLUE WATER BRIDGE
Full-time equated classified positions 34.0
Blue water bridge fund operations--34.0 FTE
positions $ 10,224,200
GROSS APPROPRIATION $ 10,224,200
Appropriated from:
Special revenue funds:
Blue water bridge fund 10,224,200
State general fund/general purpose $ 0
Sec. 112. TRANSPORTATION ECONOMIC DEVELOPMENT FUND
Forest roads $ 5,000,000
Rural county urban system 2,500,000
Target industries/economic redevelopment 23,065,100
Urban county congestion 9,782,600
Rural county primary 9,782,600
GROSS APPROPRIATION $ 50,130,300
Appropriated from:
Special revenue funds:
Economic development fund 50,130,300
State general fund/general purpose $ 0
Sec. 113. BUREAU OF AERONAUTICS
Full-time equated classified positions 57.0
Administration--57.0 FTE positions $ 6,773,200
Air service program 1,000,000 GROSS APPROPRIATION $ 7,773,200
Appropriated from:
Special revenue funds:
State aeronautics fund 7,773,200
State general fund/general purpose $ 0
Sec. 114. BUREAU OF URBAN AND PUBLIC TRANSPORTATION
Full-time equated classified positions 106.5
Administration--106.5 FTE positions $ 8,673,200
GROSS APPROPRIATION $ 8,673,200
Appropriated from:
Special revenue funds:
Comprehensive transportation fund 6,900,300
Michigan transportation fund 1,772,900
State general fund/general purpose $ 0
Sec. 115. BUS TRANSIT DIVISION: STATUTORY OPERATING
Local bus operating $ 150,576,300
Nonurban operating/capital 8,900,000
GROSS APPROPRIATION $ 159,476,300
Appropriated from:
Federal revenues:
Federal revenues 8,700,000
Special revenue funds:
Local funds 200,000
Comprehensive transportation fund 150,576,300
State general fund/general purpose $ 0
Sec. 116. INTERCITY PASSENGER AND FREIGHT
Freight property management $ 1,893,300
Detroit/Wayne County port authority 408,500 Intercity bus equipment 3,324,500
Rail passenger service 9,000,000
Freight preservation and development 6,828,000
Rail infrastructure loan program 2,000,000
Intercity bus service development 2,225,500
Marine passenger services 800,000
Terminal development 1,000,000
GROSS APPROPRIATION $ 27,479,800
Appropriated from:
Federal revenues:
Federal revenues 4,700,000
Special revenue funds:
Local funds 50,000
Rail preservation fund 2,000,000
Intercity bus equipment fund 1,000,000
Comprehensive transportation fund 19,729,800
State general fund/general purpose $ 0
Sec. 117. PUBLIC TRANSPORTATION DEVELOPMENT
Specialized services $ 3,749,500
Municipal credit program 2,000,000
Bus capital 56,442,300
Ride sharing 330,700
Van pooling 195,000
Bus property management 100,000
Service development and new technology 1,675,000
Planning grants 120,000
Audit settlements 150,000
Regional service coordination 1,000,000
Work first initiative 3,979,200
GROSS APPROPRIATION $ 69,741,700
Appropriated from:
Federal revenues:
Federal revenues 42,300,000
Special revenue funds:
Local funds 450,000
Comprehensive transportation fund 26,991,700
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 constitution of 1963, total state spending under part 1 for fiscal year 2000-2001 is $2,050,156,100.00 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 27,065,200
Grants to cities and villages 328,740,500
Grants to county road commissions 589,621,700
Critical bridge program 5,750,000
Grants to regional planning councils 488,800
Local bus operating 150,576,300
Bus capital 15,042,300
Marine passenger service 800,000
Detroit/Wayne County port authority 408,500
Local ride sharing operating grants 330,700
Planning grants 120,000
Municipal credit program 2,000,000
Specialized services 3,749,500
Total payments to local units of government $ 1,157,693,500
(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 for any quarter under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the state budget director, the senate and house of representatives standing committees on appropriations, and the senate and house fiscal agencies.
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 act:
(a) "CTF" means comprehensive transportation fund.
(b) "Department" means the department of transportation.
(c) "DOT-FHWA" means DOT, federal highway administration.
(d) "EDF" means economic development fund.
(e) "FTE" means full-time equated.
(f) "IDT" means interdepartmental transfer.
(g) "MTF" means Michigan transportation fund.
(h) "RIF" means recreation improvement fund.
(i) "SAF" means state aeronautics fund.
(j) "STF" means state trunkline fund.
Sec. 204. (1) Beginning October 1, 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. The state budget director shall report by the 30th of each month to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exception.
Sec. 205. 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. 206. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000,000.00 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. (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, and for which fees are not otherwise stipulated by law.
(2) 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. Before February 1 of each year, the department will provide to the legislature and to the house and senate fiscal agencies its rolling 5-year plan listing by county or by county road commission of all highway construction projects for the fiscal year and a list of expected projects for the ensuing fiscal years.
Sec. 306. The department shall pursue compliance with contract specifications for construction and maintenance of state highways. 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 department's prequalification process.
Sec. 307. The department shall continue its efforts to reduce administrative costs and provide the maximum funding possible for construction projects.
Sec. 308. 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 appropriations subcommittees on transportation, the house and senate fiscal agencies, and the state budget director.
Sec. 309. 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. 310. At the close of the fiscal year ending September 30, 2001, 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 an annual state transportation program.
Sec. 311. (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 and interest earned 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 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. 312. (1) For purposes of safety and brush control and for maintaining health and safety under section 15b of 1951 PA 51, MCL 247.665b, road authorities shall mow the right-of-way of a public road in accordance with the requirements prescribed in this section, subject to the following:
(a) This section does not apply within the limits of a city or village.
(b) This section is not mandatory with respect to public road rights-of-way within designated federal aid urban boundaries.
(c) Property owners may mow public road rights-of-way immediately in front of their residences, schools, or businesses.
(2) Mowing shall be 12 feet or to the leading edge of the ditch, whichever is less, adjacent to both shoulders of the roadway to any height at any time. The area between the ditch bottom and the back slopes of the rights-of-way shall be protected from mowing between September 1 and the following July 15 except as permitted in this subsection. Spraying shall be limited to the control of noxious weeds and brush within this area. From July 16 through August 31, mowing may be through the entire right-of-way if needed, including through the ditch bottom, while maintaining not less than 12 inches of grass height from the back of the ditch to the back of the right-of-way and within the median. Between July 16 and the following March 1, mechanical brush and woody stem control may be completed to whatever height is needed to provide control and safety. Twenty-five percent of all roads shall be designated annually for brush control that includes mowing with follow-up herbicide treatment during the next growing season.
(3) The mowing standards prescribed in this section shall apply to all medians 70 feet wide or more. Medians 70 feet wide or more shall be maintained as brush-free as possible and with a grass height of at least 12 inches. Twenty-five percent of the medians within a region shall be annually designated or removal or spot spray treatment of unwanted brush and trees.
(4) All mowing of the back slope and wide median areas beyond the 12-foot width from the road edge shall be performed so as to ensure a minimum of 12 inches of grass remains by September 1 each year, except in those zones designated for brush control. Areas of brush within the right-of-way shall be mowed back to prevent brush from becoming established within the right-of-way. Brush or tree stumps shall be spot treated with herbicide, as needed, for long-term control.
(5) A right-of-way may be mowed as necessary to maintain public health and safety.
(6) The road authority shall not provide compensation for any mowing or spraying that does not comply with this section.
Sec. 313. Sixty days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate subcommittees of the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate subcommitttees of the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies within 30 months.
Sec. 314. Funds appropriated in section 104 for state transportation commission per diem payments shall provide daily per diem payments of $100.00 to each of the 6 appointed members of the state transportation commission for all scheduled public state transportation commission meetings, with annual distributions of not more than $1,200.00 to each appointed member.
Sec. 315. The department shall continue to pilot the use of the Internet to fulfill the reporting requirements in this bill. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on the Internet or on the Intranet. The appropriations subcommittees shall be notified in writing of the Internet/Intranet site of any such report.
FEDERAL
Sec. 401. (1) Twenty-three to twenty-seven percent of the DOT-FHWA highway research, planning, and construction federal funds appro- priated 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) Federal aid to highways allocated to local jurisdictions in subsection (1) shall be distributed 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. 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.
(6) The department shall not borrow against the critical bridge fund for the first 9 months of the fiscal year.
Sec. 402. The appropriation in part 1 for grants to regional planning councils shall not be distributed until the regional planning councils submit to the department a work plan for the ensuing fiscal year and a description of transportation planning activities performed in the prior fiscal year.
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 in performing its contractual obligations and shall deduct that amount from the funds appropriated to the county involved.
Sec. 504. (1) The funds appropriated in part 1 for the economic development and critical 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 1951 PA 51, MCL 247.661.
(2) Interest earned in the department of transportation economic development fund and critical bridge 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 and critical bridge 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.
(4) None of the funds statutorily dedicated to the transportation economic development fund and critical bridge fund shall be diverted to other projects without the notification and approval of the house and senate appropriations subcommittees on transportation.
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 act 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 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 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.
Sec. 506. (1) 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, and $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) In addition, 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 $2,853,300.00 for commemorative plates and $4,215,000.00 for specialty plates. These amounts are appropriated to the department of state in part 1 to administer the commemorative and specialty license plate programs pursuant to section 225 of the Michigan vehicle code, 1949 PA 300, MCL 257.225.
(3) The department of state shall prepare an annual report on the number of, and the additional costs associated with, these license plate programs 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.
(4) 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.
STATE TRUNKLINE FUND
Sec. 601. The department shall, when feasible, work with the road construction industry 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 meet 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 and provide a summary of the results of these inspections to the house and senate appropriations subcommittees on transportation and house and senate fiscal agencies.
Sec. 603. The department shall continue to identify high cost accident intersections in conjunction with AAA or other automobile insurance carriers for safety project selection.
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. 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 the 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. 704. 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 and senate appropriations subcommittees on transportation and the house and senate fiscal agencies by December 15, 2000.
Sec. 705. For the fiscal year ending September 30, 2001, 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. 706. If funds appropriated in section 116 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. 707. Whenever possible, the department shall work with the local transit agencies to avoid establishing new routes that duplicate existing routes served by intercity carriers when providing services under regional transportation service programs. It is preferable that private intercity carriers be provided an opportunity to bid by local public transit agencies on services funded through the regional transportation service program.
AERONAUTICS FUND
Sec. 801. At the close of the fiscal year ending September 30, 2001, 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.