SUBSTITUTE FOR

SENATE BILL NO. 184

A bill to make appropriations for the state transportation

department for the fiscal year ending September 30, 2014; and to

provide for the expenditure of the appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the state transportation

department for the fiscal year ending September 30, 2014, from the

following funds:

STATE TRANSPORTATION DEPARTMENT

APPROPRIATION SUMMARY

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

Full-time equated classified positions........ 2,912.3

GROSS APPROPRIATION.................................... $ 3,598,616,700

Total interdepartmental grants and intradepartmental

transfers............................................ 3,625,100

ADJUSTED GROSS APPROPRIATION........................... $ 3,594,991,600

Federal revenues:

DOT, federal transit administration.................... 44,710,000

DOT-FHWA, highway research, planning, and construction. 1,072,497,500

DOT, federal railroad administration................... 3,100,000

DOT, federal aviation administration................... 78,578,000

Total federal revenues................................. 1,198,885,500

Special revenue funds:

Local revenues......................................... 50,177,100

Private revenues....................................... 100,000

Total local and private revenues....................... 50,277,100

Blue Water Bridge fund................................. 46,212,700

Comprehensive transportation fund...................... 281,674,500

Economic development fund.............................. 42,477,500

IRS debt service rebate................................ 6,868,800

Intercity bus equipment fund........................... 140,000

Local bridge fund...................................... 23,787,900

Michigan transportation fund........................... 989,713,600

Roads and risks reserve fund........................... 115,000,000

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

State aeronautics fund................................. 14,955,300

State trunkline fund................................... 701,698,700

Total other state restricted revenues.................. 2,224,529,000

State general fund/general purpose..................... $ 121,300,000

State general fund/general purpose schedule:

Ongoing state general fund/general

purpose............................................. 0

One-time state general fund/general

purpose.................................. 121,300,000

Sec. 102. DEBT SERVICE

State trunkline........................................ $ 199,738,200

Economic development................................... 10,003,400

Local bridge fund...................................... 2,406,300

Blue Water Bridge fund................................. 6,962,500

Airport safety and protection plan..................... 3,892,200

Comprehensive transportation........................... 19,318,500

GROSS APPROPRIATION.................................... $ 242,321,100

Appropriated from:

Federal revenues:

DOT-FHWA, highway research, planning, and construction. 45,912,200

Special revenue funds:

Blue Water Bridge fund................................. 6,962,500

Comprehensive transportation fund...................... 19,318,500

Economic development fund.............................. 10,003,400

Local bridge fund...................................... 2,406,300

IRS debt service rebate................................ 6,868,800

State aeronautics fund................................. 3,892,200

State trunkline fund................................... 146,957,200

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

Sec. 103. COLLECTION, ENFORCEMENT, AND OTHER AGENCY

SUPPORT SERVICES

MTF grant to department of environmental quality....... $ 1,285,700

MTF grant to department of state for collection of

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

MTF grant to department of treasury.................... 2,500,000

MTF grant to legislative auditor general............... 296,000

STF grant to department of attorney general............ 2,387,000

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

STF grant to department of technology, management, and

budget............................................... 1,324,200

STF grant to department of state police................ 11,258,700

STF grant to department of treasury.................... 129,700

STF grant to legislative auditor general............... 687,600

SAF grant to department of attorney general............ 174,400

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

SAF grant to department of technology, management, and

budget............................................... 40,000

SAF grant to department of treasury.................... 71,600

SAF grant to legislative auditor general............... 28,300

CTF grant to department of attorney general............ 200,900

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

CTF grant to department of technology, management, and

budget............................................... 46,000

CTF grant to department of treasury.................... 12,200

CTF grant to legislative auditor general............... 36,400

GROSS APPROPRIATION.................................... $ 46,525,700

Appropriated from:

Special revenue funds:

Comprehensive transportation fund...................... 495,500

Michigan transportation fund........................... 24,081,700

State aeronautics fund................................. 464,300

State trunkline fund................................... 21,484,200

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

Sec. 104. EXECUTIVE DIRECTION

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

Full-time equated classified positions........... 29.3

Unclassified salaries.................................. $ 707,000

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

Commission audit--29.3 FTE positions................... 3,298,200

GROSS APPROPRIATION.................................... $ 5,631,600

Appropriated from:

Special revenue funds:

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

State trunkline fund................................... 4,005,200

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

Sec. 105. BUSINESS SUPPORT

Full-time equated classified positions........... 76.5

Business support services--67.5 FTE positions.......... $ 9,427,700

Economic development and enhancement programs--9.0 FTE

positions............................................ 1,426,200

Property management.................................... 8,068,700

Worker's compensation.................................. 2,013,000

GROSS APPROPRIATION.................................... $ 20,935,600

Appropriated from:

Special revenue funds:

Comprehensive transportation fund...................... 1,369,700

Economic development fund.............................. 378,700

Michigan transportation fund........................... 760,500

State aeronautics fund................................. 625,400

State trunkline fund................................... 17,801,300

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

Sec. 106. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 31,119,700

GROSS APPROPRIATION.................................... $ 31,119,700

Appropriated from:

Federal revenues:

DOT-FHWA, highway research, planning, and construction. 520,500

Special revenue funds:

Blue Water Bridge fund................................. 53,100

Comprehensive transportation fund...................... 215,600

Economic development fund.............................. 37,200

Michigan transportation fund........................... 284,700

State aeronautics fund................................. 168,300

State trunkline fund................................... 29,840,300

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

Sec. 107. FINANCE, CONTRACTS, AND SUPPORT SERVICES

Full-time equated classified positions.......... 186.0

Finance, contracts, and support services--186.0 FTE

positions........................................... $ 20,896,100

GROSS APPROPRIATION.................................... $ 20,896,100

Appropriated from:

Interdepartmental grant revenues:

IDG for accounting service center user charges......... 3,625,100

Special revenue funds:

Michigan transportation fund........................... 1,677,000

State trunkline fund................................... 15,594,000

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

Sec. 108. TRANSPORTATION PLANNING

Full-time equated classified positions.......... 141.0

Transportation planning--141.0 FTE positions........... $ 37,794,600

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

GROSS APPROPRIATION.................................... $ 38,283,400

Appropriated from:

Federal revenues:

DOT-FHWA, highway research, planning, and construction. 20,000,000

Special revenue funds:

Comprehensive transportation fund...................... 610,500

Michigan transportation fund........................... 6,941,300

State aeronautics fund................................. 15,000

State trunkline fund................................... 10,716,600

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

Sec. 109. DESIGN AND ENGINEERING SERVICES

Full-time equated classified positions........ 1,500.8

Engineering services--701.1 FTE positions.............. $ 69,781,400

Program services--737.7 FTE positions.................. 59,563,000

Intelligent transportation systems operations--12.0

FTE positions........................................ 10,712,900

Welcome center operations--50.0 FTE positions.......... 4,403,900

GROSS APPROPRIATION.................................... $ 144,461,200

Appropriated from:

Federal revenues:

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

Special revenue funds:

Michigan transportation fund........................... 8,216,800

State trunkline fund................................... 112,714,600

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

Sec. 110. HIGHWAY MAINTENANCE

Full-time equated classified positions.......... 808.7

State trunkline operations--808.7 FTE positions........ $ 275,689,500

GROSS APPROPRIATION.................................... $ 275,689,500

Appropriated from:

Special revenue funds:

State trunkline fund................................... 275,689,500

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

Sec. 111. ROAD AND BRIDGE PROGRAMS

State trunkline federal aid and road and bridge

construction......................................... $ 868,193,500

Local federal aid and road and bridge construction..... 240,443,000

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

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

Local bridge program................................... 21,381,600

County road commissions................................ 583,032,000

Cities and villages.................................... 325,066,400

GROSS APPROPRIATION.................................... $ 2,074,116,500

Appropriated from:

Federal revenues:

DOT-FHWA, highway research, planning, and construction. 982,535,000

Special revenue funds:

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

Blue Water Bridge fund................................. 32,907,300

Local bridge fund...................................... 21,381,600

Michigan transportation fund........................... 944,098,400

State trunkline fund................................... 63,194,200

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

Sec. 112. BLUE WATER BRIDGE

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

Blue Water Bridge operations--41.0 FTE positions....... $ 6,289,800

GROSS APPROPRIATION.................................... $ 6,289,800

Appropriated from:

Special revenue funds:

Blue Water Bridge fund................................. 6,289,800

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

Sec. 113. TRANSPORTATION ECONOMIC DEVELOPMENT

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

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

Target industries/economic redevelopment............... 8,029,000

Urban county congestion................................ 8,264,600

Rural county primary................................... 8,264,600

GROSS APPROPRIATION.................................... $ 32,058,200

Appropriated from:

Special revenue funds:

Economic development fund.............................. 32,058,200

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

Sec. 114. AERONAUTICS SERVICES

Full-time equated classified positions........... 54.0

Aviation services--54.0 FTE positions.................. $ 7,354,700

Air service program.................................... 301,200

GROSS APPROPRIATION.................................... $ 7,655,900

Appropriated from:

Special revenue funds:

State aeronautics fund................................. 7,655,900

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

Sec. 115. PUBLIC TRANSPORTATION SERVICES

Full-time equated classified positions........... 36.0

Passenger transportation services--36.0 FTE positions.. $ 5,662,800

GROSS APPROPRIATION.................................... $ 5,662,800

Appropriated from:

Federal revenues:

DOT, federal transit administration.................... 972,100

Special revenue funds:

Comprehensive transportation fund...................... 4,651,800

Michigan transportation fund........................... 38,900

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

Sec. 116. BUS TRANSIT DIVISION: STATUTORY OPERATING

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

Discretionary state operating.......................... 5,400,000

Nonurban operating/capital............................. 25,187,900

GROSS APPROPRIATION.................................... $ 197,211,900

Appropriated from:

Federal revenues:

DOT, federal transit administration.................... 23,187,900

Special revenue funds:

Comprehensive transportation fund...................... 172,024,000

Local funds............................................ 2,000,000

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

Sec. 117. INTERCITY PASSENGER AND FREIGHT

Full-time equated classified positions........... 39.0

Office of rail--39.0 FTE positions..................... $ 6,293,700

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

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

Intercity services..................................... 5,940,000

Rail operations and infrastructure..................... 26,092,000

Rail passenger service/Wolverine....................... 19,333,000

Marine passenger service............................... 400,000

Terminal development................................... 461,000

GROSS APPROPRIATION.................................... $ 59,987,900

Appropriated from:

Federal revenues:

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

DOT, federal railroad administration................... 3,100,000

Special revenue funds:

Local funds............................................ 150,000

Private funds.......................................... 100,000

Comprehensive transportation fund...................... 47,309,900

Intercity bus equipment fund........................... 140,000

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

Michigan transportation fund........................... 1,987,900

State trunkline fund................................... 700,100

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

Sec. 118. PUBLIC TRANSPORTATION DEVELOPMENT

Specialized services................................... $ 18,028,800

Transit capital........................................ 32,145,300

Van pooling............................................ 807,000

Service initiatives.................................... 1,682,900

Transportation to work................................. 4,700,000

GROSS APPROPRIATION.................................... $ 57,364,000

Appropriated from:

Federal revenues:

DOT, federal transit administration.................... 16,050,000

Special revenue funds:

Local funds............................................ 5,635,000

Comprehensive transportation fund...................... 35,679,000

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

Sec. 119. CAPITAL OUTLAY

(1) BUILDINGS AND FACILITIES

Special maintenance, remodeling, and additions......... $ 3,001,500

GROSS APPROPRIATION.................................... $ 3,001,500

Appropriated from:

State trunkline fund................................... 3,001,500

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

(2) AIRPORT IMPROVEMENT PROGRAMS

Airport safety, protection and improvement program..... $ 93,104,300

GROSS APPROPRIATION.................................... $ 93,104,300

Appropriated from:

Federal revenues:

DOT, federal aviation administration................... 78,578,000

Special revenue funds:

Local funds............................................ 12,392,100

State aeronautics fund................................. 2,134,200

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

Sec. 120. ONE-TIME BASIS ONLY

Priority roads investment program...................... $ 115,000,000

Federal aid match for state trunkline road and bridge

construction......................................... $ 121,300,000

GROSS APPROPRIATION.................................... $ 236,300,000

Appropriated from:

Roads and risks reserve fund........................... 115,000,000

State general fund/general purpose..................... $ 121,300,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2013-2014

GENERAL SECTIONS

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

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2013-2014 is $2,345,829,000.00 and

state spending from state resources to be paid to local units of

government for fiscal year 2013-2014 is $1,208,687,600.00. The

itemized statement below identifies appropriations from which

spending to local units of government will occur:

DEPARTMENT OF TRANSPORTATION

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

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

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

Local bridge program................................... 21,381,600

Grants to county road commissions...................... 583,032,000

Grants to cities and villages.......................... 325,066,400

Economic development fund.............................. 32,058,200

Air service program.................................... 301,200

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

Discretionary state operating.......................... 5,400,000

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

Marine passenger service............................... 400,000

Terminal development................................... 461,000

Specialized services................................... 3,943,800

Municipal credit program............................... 0

Transit capital........................................ 25,895,300

Service initiatives.................................... 332,900

Transportation to work................................. 4,700,000

Airport safety, protection, and improvement

program............................................... 2,134,200

Total payments to local units of government............ $ 1,208,687,600

Sec. 202. The appropriations authorized under this act 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) "AMTRAK" means the national railroad passenger

corporation.

(b) "CTF" means comprehensive transportation fund.

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

transportation.

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

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

(g) "IRS" means the internal revenue service.

(h) "MTF" means Michigan transportation fund.

(i) "SAF" means state aeronautics fund.

(j) "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 $200,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

in part 1 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 part 1 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 part 1

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 part 1

pursuant to section 393(2) of the management and budget act, 1984

PA 431, MCL 18.1393.

Sec. 207. The department shall cooperate with the department

of technology, management, and budget to maintain a searchable

website accessible by the public at no cost that includes, but is

not limited to, all of the following:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

including the vendor name, payment date, payment amount, and

payment description.

(d) The number of active department employees by job

classification.

(e) Job specifications and wage rates.

Sec. 208. The departments and agencies receiving

appropriations in part 1 shall use the Internet to fulfill the

reporting requirements of this act. This requirement may include

transmission of reports via electronic mail to the recipients

identified for each reporting requirement, or it may include

placement of reports on an Internet or Intranet site.

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

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

competitively priced and of comparable quality American goods or

services, or both, are available. Preference shall be given to

goods or services, or both, manufactured or provided by Michigan

businesses, if they are competitively priced and of comparable

quality. In addition, preference shall be given to goods or

services, or both, that are manufactured or provided by Michigan

businesses owned and operated by veterans, if they are

competitively priced and of comparable quality.

Sec. 210. The director shall take all reasonable steps to

ensure businesses in deprived and depressed communities compete for

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

Each director shall strongly encourage firms with which the

department contracts to subcontract with certified businesses in

depressed and deprived communities for services, supplies, or both.

Sec. 212. The department and agencies receiving appropriations

in part 1 shall receive and retain copies of all reports funded

from appropriations in part 1. Federal and state guidelines for

short-term and long-term retention of records shall be followed.

The department may electronically retain copies of reports unless

otherwise required by federal and state guidelines.

Sec. 215. A department shall not take disciplinary action

against an employee for communicating with a member of the

legislature or his or her staff.

Sec. 228. Not later than November 30, the state budget office

shall prepare and transmit a report that provides for estimates of

the total general fund/general purpose appropriation lapses at the

close of the prior fiscal year. This report shall summarize the

projected year-end general fund/general purpose appropriation

lapses by major departmental program or program areas. The report

shall be transmitted to the office of the state budget, the

chairpersons of the senate and house of representatives standing

committees on appropriations, and the senate and house fiscal

agencies.

Sec. 229. Within 14 days after the release of the executive

budget recommendation, the department shall cooperate with the

state budget office to provide the state budget director, the

senate and house appropriations chairs, the senate and house

appropriations subcommittees on transportation, respectively, and

the senate and house fiscal agencies with an annual report on

estimated state restricted fund balances, state restricted fund

projected revenues, and state restricted fund expenditures for the

fiscal years ending September 30, 2013 and September 30, 2014.

Sec. 233. Not later than April 1, the department shall prepare

and transmit a report that provides detail regarding the

department's expenditures for administration and planning

associated with local units of government. The report shall list

the portion of all the expenditures from part 1 that are allocated

for administration and planning that are associated with the

disbursement of all local funds. The report shall be transmitted to

the office of the state budget, the senate and house appropriations

chairs, the senate and house appropriations subcommittees on

transportation, respectively, and the senate and house fiscal

agencies.

Sec. 235. The department shall maintain, on a publicly

accessible website, a department scorecard that identifies, tracks,

and regularly updates key metrics that are used to monitor and

improve the agency's performance.

Sec. 260. The departments and agencies receiving

appropriations in part 1 shall prepare a report on out-of-state

travel expenses not later than January 1 of each year. The travel

report shall be a listing of all travel by classified and

unclassified employees outside this state in the immediately

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

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

submitted to the senate and house appropriations committees, the

house and senate fiscal agencies, and the state budget director.

The report shall include the following information:

(a) The dates of each travel occurrence.

(b) The transportation and related costs of each travel

occurrence, including the proportion funded with state general

fund/general purpose revenues, the proportion funded with state

restricted revenues, the proportion funded with federal revenues,

and the proportion funded with other revenues.

Sec. 262. Funds appropriated in part 1 shall not be used by a

principal executive department, state agency, or authority to hire

a person to provide legal services that are the responsibility of

the attorney general. This prohibition does not apply to legal

services for bonding activities and for those activities that the

attorney general authorizes.

Sec. 263. (1) The department shall report no later than April

1, 2014 on each specific policy change made to implement a public

act affecting the department that took effect during the prior

calendar year to the house and senate appropriations subcommittees

on the budget for the department, the joint committee on

administrative rules, and the senate and house fiscal agencies.

(2) Funds appropriated in part 1 shall not be used by the

department to adopt a rule that will apply to a small business and

that will have a disproportionate economic impact on small

businesses because of the size of those businesses if the

department fails to reduce the disproportionate economic impact of

the rule on small businesses as provided under section 40 of the

administrative procedures act of 1969, 1969 PA 306, MCL 24.240.

(3) As used in this section:

(a) "Rule" means that term as defined under section 7 of the

administrative procedures act of 1969, 1969 PA 306, MCL 24.207.

(b) "Small business" means that term as defined under section

7a of the administrative procedures act of 1969, 1969 PA 306, MCL

24.207a.

Sec. 270. In order to reduce costs and maintain quality, it is

the intent of the legislature that, excluding the fleet of motor

vehicles for the department of state police, the department will

prioritize the utilization of remanufactured parts as the primary

means of maintenance and repair for the state of Michigan's fleet

of motor vehicles.

DEPARTMENTAL SECTIONS

Sec. 301. (1) The department may establish a fee schedule and

collect fees sufficient to cover the costs to issue the permits

that the department is authorized by law to issue upon request,

unless otherwise stipulated by law. All permit fees are

nonrefundable application fees and shall be credited to the

appropriate fund to recover the direct and indirect costs of

receiving, reviewing, and processing the requests.

(2) A bridge authority shall hold 3 public hearings on an

increase in any toll charged by the authority at least 30 days

before the toll change will become effective. Two of the hearings

shall be held within 5 miles of the bridge over which the bridge

authority has jurisdiction. One hearing shall be held in Lansing.

Public hearings held under this section shall be conducted in

accordance with the open meetings act, 1976 PA 267, MCL 15.261 to

15.275, and shall be conducted so as to provide a reasonable

opportunity for public comment, including both spoken and written

comments.

Sec. 303. On request, the department shall provide to a

legislator, in writing, a report on the amount of money to be

received by each city and village and the county road commission of

each county, that is included in whole or in part within the

legislator's legislative district.

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

project, the department requires a contractor to submit financial

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

bid documentation shall be kept confidential and shall not be

disclosed other than to a department representative without the

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

documentation if necessary to address or defend a claim by a

contractor.

Sec. 305. (1) The department may permit space on public

passenger transportation properties to be occupied by public or

private tenants on a competitive market rate basis. The department

shall require that revenue from the tenants be placed in an account

to be used to pay the costs to maintain and improve the property.

(2) The department shall charge public transit agencies and

intercity bus carriers equal rates per square foot for leasing

space in state-owned intermodal facilities.

Sec. 306. (1) The amounts appropriated in part 1 to support

tax and fee collection, law enforcement, and other program services

provided to the department and to transportation funds by other

state departments shall be expended from transportation funds

pursuant to annual contracts between the department and those other

state departments. The contracts shall be executed prior to the

expenditure or obligation of those funds. The contracts shall

provide, but are not limited to, the following data applicable to

each state department:

(a) Estimated costs to be recovered from transportation funds.

(b) Description of services provided to the department and/or

transportation funds and financed with transportation funds.

of services being provided and the activities financed with

transportation funds.

(2) Not later than 2 months after publication of the state of

Michigan comprehensive annual financial report, each state

department receiving funding pursuant to an interdepartment

contract with the department shall submit a written report to the

department, the state budget director, and the house and senate

fiscal agencies stating by spending authorization account the

amount of estimated funds contracted with the department, the

amount of funds expended, the amount of funds returned to the

transportation funds, and any unreimbursed transportation-related

costs incurred but not billed to transportation funds. A copy of

the report shall be submitted to the auditor general, and the

report shall be subject to audit by the auditor general as provided

in subsection (3).

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

general shall conduct an audit of charges to transportation funds

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

shall include both charges governed by interdepartmental contracts

as well as miscellaneous charges from other state departments not

governed by contracts. The auditor general shall prepare a detailed

report, with recommendations and conclusions, including a summary

of charges and related services to transportation funds by

department, the appropriateness of those charges, the cost

allocation methodologies used in determining the level of funding,

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

report shall be provided to the senate and house of representatives

committees on appropriations, the senate and house fiscal agencies,

and the state budget director 9 months after publication of the

state of Michigan comprehensive annual financial report.

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

provide to the legislature, the state budget office, and the house

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

county or by county road commission all highway construction

projects for the fiscal year and all expected projects for the

ensuing fiscal years.

Sec. 308. (1) As prescribed in subsection (2), the department

shall submit reports to the state budget director, the house and

senate appropriations subcommittees on transportation, and the

house and senate fiscal agencies on department activities related

to the prequalification of construction contractors under 1933 PA

170, MCL 123.501 to 123.508, and related administrative rules. The

report shall be submitted on or before December 1, 2013.

(2) The report shall include all of the following:

(a) A description of the department's processes and procedures

for evaluating construction contractor performance on capital

construction projects administered by the department including

state trunkline projects, rail infrastructure projects, local

agency federal-aid highway projects, and airport improvement

projects.

(b) Criteria that would cause the department to rate

contractor performance as unsatisfactory.

given an unsatisfactory performance rating by the department.

(d) A description of all department actions related to

unsatisfactory contractor performance ratings and restrictions on

contractor prequalification during the fiscal year ending September

30, 2013.

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

copies of the agenda and approved minutes of monthly transportation

commission meetings to the members of the house and senate

appropriations subcommittees on transportation, the house and

senate fiscal agencies, and the state budget director.

Sec. 311. From the funds appropriated in part 1, the

department shall work with the Michigan economic development

corporation and local stakeholders to update a 1992 study of a

proposed Father Marquette national memorial and Mackinac Straits

area museum. The study update shall include a discussion of funding

alternatives.

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

department may increase a state infrastructure bank program and

grant or loan funds in accordance with regulations of the state

infrastructure bank program of the United States department of

transportation. The state infrastructure bank is to be administered

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

sustaining resource for financing transportation infrastructure

projects.

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

received by the state as federal grants, repayment of state

infrastructure bank loans, or other reimbursement or revenue

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

and interest earned on that money shall be deposited in the

revolving state infrastructure bank fund and shall be available for

transportation infrastructure projects. At the close of the fiscal

year, any unencumbered funds remaining in the state infrastructure

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

succeeding fiscal year.

(3) The department shall submit a report to the state budget

director, the house and senate appropriations subcommittees on

transportation, and the house and senate fiscal agencies on the

status of the state infrastructure bank. The report shall be

submitted on or before December 1, 2013. The report shall include

all of the following:

(a) The balance in the state infrastructure bank at September

30, 2013, including a breakdown of the balance by cash and cash

equivalents, outstanding loans, and balance available for loan to

local agencies.

(b) A breakdown of the state infrastructure loan balance by

amounts designated as originating from federal sources and the

amounts originating from nonfederal sources.

amount, project description, loan term, and amount outstanding.

Sec. 319. The department shall post signs at each rest area to

identify the agency or contractor responsible for maintenance of

the rest area. The signs shall include a department telephone

number and shall indicate that unsafe or unclean conditions at the

rest area may be reported to that telephone number.

Sec. 353. The department shall review its contractor payment

process and ensure that all prime contractors are paid promptly.

The department shall ensure that prime contractors are in

compliance with special provision 109.10 regarding the prompt

payment of subcontractors.

Sec. 357. When presented with complete local federal aid

project submittals, the department shall complete all necessary

reviews and inspections required to let local federal aid projects

within 120 days of receipt. The department shall implement a system

for monitoring the local federal aid project review process.

Sec. 375. The department is prohibited from reimbursing

contractors or consultants for costs associated with groundbreaking

ceremonies, receptions, open houses, or press conferences related

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

appropriated in part 1.

Sec. 381. The department shall require as a condition of each

contract or subcontract for construction, maintenance, or

engineering services that the prequalified contractor or

prequalified subcontractor agree to use the E-Verify system to

verify that all persons hired during the contract term by the

contractor or subcontractor are legally present and authorized to

work in the United States. The department may verify this

information directly or may require contractors and subcontractors

to verify the information and submit a certification to the

department. The department shall report to the house and senate

appropriations committees and the house and senate fiscal agencies

by March 1, 2014 describing the processes it has developed and

implemented under provisions of this section. As used in this

section, "E-Verify" means an Internet-based system operated by the

department of homeland security, U.S. citizenship and immigration

services in partnership with the social security administration.

Sec. 382. In administering a contract with a county road

commission, city, or village that allocates costs of construction

or reconstruction of highways, roads, and streets as provided in

section 18d of 1951 PA 51, MCL 247.668d, the department shall

submit the final cost-sharing bill to the county road commission,

city, or village not later than 2 years after the date of the final

contract payment to the construction contractor.

Sec. 383. (1) The department shall prepare an annual report on

all travel by executive branch employees, and others including

local public officials, university employees, and other public

employees on department-owned aircraft. The report shall include,

by department, the name of the traveler, the travel origination

location, the travel destination location, type of aircraft, and

the total estimated costs associated with the air travel.

(2) The report shall be submitted to the senate and house

appropriations subcommittees on transportation and the house and

senate fiscal agencies no later than July 1.

(3) From the funds appropriated in part 1, the department is

prohibited from transporting legislators or legislative staff on

state-owned aircraft without prior approval from the senate

majority leader or the speaker of the house of representatives and

only when the aircraft is already scheduled by state employees on

related official state business.

(4) The department shall maintain a system for recovering the

cost of operating department-owned aircraft through charges to

aircraft users.

Sec. 384. (1) Except as otherwise provided in subsection (2),

the department shall not obligate the state to expend any state

transportation revenue for construction planning or construction of

the Detroit River International Crossing or a renamed successor. In

addition, except as provided in subsection (2), the department

shall not commit the state to any new contract related to the

construction planning or construction of the Detroit River

International Crossing or a renamed successor that would obligate

the state to expend any state transportation revenue. An

expenditure for staff resources used in connection with project

activities, which expenditure is subject to full and prompt

reimbursement from Canada, shall not be considered an expenditure

of state transportation revenue.

(2) If the legislature enacts specific enabling legislation

for the construction of the Detroit River International Crossing or

a renamed successor, subsection (1) does not apply once the

enabling legislation goes into effect.

Sec. 385. (1) The department shall submit reports to the state

budget director, the speaker of the house, the house minority

leader, the senate majority leader, the senate minority leader, the

house and senate appropriations subcommittees on transportation,

and the house and senate fiscal agencies on department activities

related to all nonconstruction or construction planning activities

related to the Detroit River International Crossing or a renamed

successor. The initial report shall be submitted on or before

December 1, 2013 and shall cover the fiscal year ending September

30, 2013.

(2) The initial report shall include, at a minimum, all of the

following:

(a) Department costs incurred in the fiscal year ending

September 30, 2013, including employee salaries, wages, benefits,

travel, and contractual services, and what activities those costs

were related to.

(b) Costs of other executive branch agencies incurred in the

fiscal year ending September 30, 2013, including employee salaries,

wages, benefits, travel, and contractual services, and what

activities those costs were related to.

described in subdivisions (a) and (b).

(d) A breakdown of reimbursements made by Canada under section

384(1) to the state for expenditures for staff resources used in

connection with project activities.

(e) A narrative description of the status of the Detroit River

International Crossing or a renamed successor, including efforts

undertaken to implement provisions of the crossing agreement

executed June 15, 2012 by representatives of the Canadian

government and this state.

(3) After submission of the initial report, a subsequent

report shall be submitted on March 1, 2014, June 1, 2014, and

September 1, 2014 and shall include the same information described

in subsection (2) for the applicable previous fiscal quarter.

FEDERAL

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

year authorization from the federal government to commit

transportation funds, the department shall notify local agency

representatives, the senate and house of representatives

appropriations transportation subcommittees, the senate and house

fiscal agencies, and the state budget director regarding the amount

of federal aid for categorical allocations to state and local

agency programs not specifically allocated in either federal or

state law.

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

planning, and construction funds made available to this state shall

be allocated to transportation programs administered by local

jurisdictions in accordance with section 10o of 1951 PA 51, MCL

247.660o. A local road agency, with respect to a project approved

for federal aid funding in a state transportation improvement

program, may enter into a voluntary buyout agreement with the

department or with another local road agency to exchange the

federal aid with state restricted transportation funds as agreed to

by the respective parties. The state restricted transportation

funds received in exchange for federal aid funds shall be used for

the same purpose as the federal aid funds were originally intended.

MICHIGAN TRANSPORTATION FUND

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

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

of licensing and regulatory affairs or the department of state

police is deposited in the Michigan transportation fund.

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

economic development and local bridge programs shall not lapse at

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

for the purposes for which appropriated in accordance with 1987 PA

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

247.660.

(2) Interest earned in the department of transportation

economic development fund and local bridge fund shall remain in the

respective funds and shall be allocated to the respective programs

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

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

department of transportation economic development fund and local

bridge fund may receive federal, local, or private funds or

restricted source funds such as interest earnings. These funds are

appropriated for projects that are consistent with the purposes of

the respective funds.

(4) None of the funds statutorily dedicated to the

transportation economic development fund and local bridge fund

shall be diverted to other projects.

Sec. 504. Funds from the Michigan transportation fund shall be

distributed to the comprehensive transportation fund, the economic

development fund, the recreation improvement fund, and the state

trunkline fund, in accordance with this act and part 711 of the

natural resources and environmental protection act, 1994 PA 451,

MCL 324.71101 to 324.71108, and may only be used as specified in

this act, 1951 PA 51, MCL 247.651 to 247.675, and part 711 of the

natural resources and environmental protection act, 1994 PA 451,

MCL 324.71101 to 324.71108.

STATE TRUNKLINE FUND

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

industry and engineering consulting community to develop

performance and road construction warranties for construction

contracts. The development of warranties shall include warranties

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

projects. The department will report by September 30 of each

calendar year to the house of representatives and senate

appropriations subcommittees on transportation, the state budget

director, and the house and senate fiscal agencies on the status of

efforts to develop performance and road construction warranties.

Sec. 603. The department shall use traffic congestion as 1 of

the criteria in determining the priorities for designating which

roads shall be remediated in its 5-year road plan, which must be

submitted on or before March 1 of each year. Criteria for

evaluating traffic congestion shall include, but not be limited to,

coordination with local, county, and regional planning, improvement

in traffic operations, improvement in physical roadway conditions,

accident reduction, and coordination with area public

transportation planning.

Sec. 604. At the close of the fiscal year, any unencumbered

and unexpended balance in the state trunkline fund shall remain in

the state trunkline fund and shall carry forward and is

appropriated for federal aid road and bridge programs for projects

contained in the annual state transportation program.

Sec. 610. The department shall have as a priority the removal

of dead deer and other large animal remains from the traveled

portion and shoulder of state highways. The department, and

counties that perform state highway maintenance under contract,

shall remove animal remains, wherever practicable and when funds

are available, away from the traveled portion and shoulder of state

highways.

Sec. 612. The department shall establish guidelines governing

incentives and disincentives provided under contracts for state

trunkline projects. The guidelines shall include specific financial

information concerning incentives and disincentives. On or before

January 1 of each year, the department shall prepare a report for

the immediately preceding fiscal year regarding contract incentives

and disincentives. This report shall include a list, by project, of

the contractors that received contract incentives and/or

disincentives, the amount of the incentives and/or disincentives,

and the number of days that each project was completed either ahead

or past the contracted completion date. This report shall be

provided to the senate and house appropriations subcommittees on

transportation, the senate and house standing committees on

transportation, and the senate and house fiscal agencies.

Sec. 660. (1) The legislature encourages the department to

examine the use of alternative road surface materials, including

recycled materials, and to develop criteria and specifications for

their use in both department-managed and contracted projects.

(2) The department shall evaluate the use of a bituminous mix

which incorporates crumb rubber from scrap tires.

COMPREHENSIVE TRANSPORTATION FUND

Sec. 701. The department shall establish an intercity bus

equipment and facility fund as a subsidiary fund within the

comprehensive transportation fund created under section 10b of 1951

PA 51, MCL 247.660b. Proceeds received by this state from the sale

of state-owned intercity bus equipment shall be credited to the

intercity bus equipment facility fund for the purchase and repair

of intercity bus equipment, as appropriated. Security deposits not

returned to a lessee of state-owned intercity bus equipment under

terms of the lease agreement shall be credited to the intercity bus

equipment fund for the repair of intercity bus equipment, as

appropriated. Money received by the department from lease payments

for state-owned intercity bus equipment, and facility maintenance

charges under terms of leases of state-owned intercity facilities,

shall be credited to the intercity bus equipment facility fund for

the purchase and repair of intercity bus equipment or for the

maintenance and rehabilitation of state-owned intercity facilities,

as appropriated. At the close of the fiscal year, any funds

remaining in the intercity bus equipment facility fund shall remain

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

Sec. 702. Money that is received by this state as repayment

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

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

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

fund created by section 17 of the state transportation preservation

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

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

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

Sec. 703. After receiving notification from a railroad company

pursuant to section 8 of the state transportation preservation act

of 1976, 1976 PA 295, MCL 474.58, the department shall immediately

notify the house of representatives and senate appropriations

subcommittees on transportation and the state budget office that

the railroad company has filed with the appropriate governmental

agencies for abandonment of a line.

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

a complete operations assessment and a financial disclosure

statement. The operations assessment shall include operational

goals for the next 5 years and recommendations to improve land

acquisition and development efficiency. The report shall be

completed and submitted to the house of representatives and senate

appropriations subcommittees on transportation, the state budget

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

of each fiscal year for the prior fiscal year.

Sec. 711. (1) As prescribed in subsection (2), the department

shall submit reports to the state budget director, the house and

senate appropriations subcommittees on transportation, and the

house and senate fiscal agencies on rail passenger service provided

by AMTRAK under a contractual agreement with the department. The

report shall be submitted on or before May 1, 2014.

(2) The report shall include all of the following:

(a) Passenger counts for the preceding fiscal year for each of

the 3 AMTRAK routes in Michigan.

(b) Revenue and operating expenses by AMTRAK route.

fiscal year by AMTRAK route.

(d) A discussion of major factors affecting route costs and

revenue and net state costs in the preceding fiscal year, and

factors affecting route costs and revenue and net state costs

anticipated in the current and future fiscal years.

Sec. 735. For the fiscal year ending September 30, 2014, the

appropriation to a street railway pursuant to section 10e(22) of

1951 PA 51, MCL 247.660e, is $0.

Sec. 736. From the funds appropriated in part 1 for rail

operations and infrastructure, $1,500,000.00 shall be allocated for

a pilot project to test traffic control devices at rail grade

crossings on railroad tracks that are federally designated as a

high-speed rail corridor under 49 USC 26106. Any pilot project

entered into under this section shall be done using a competitive

bidding process.

Sec. 740. The department shall report by March 1 of each year

to the house of representatives and senate appropriations

subcommittees on transportation, the house and senate fiscal

agencies, and the state budget director the encumbered and

unencumbered balances of the comprehensive transportation fund.

AERONAUTICS FUND

Sec. 801. Except as otherwise provided in section 903 for

capital outlay, at the close of the fiscal year, any unobligated

and unexpended balance in the state aeronautics fund created in the

aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1

to 259.208, shall lapse to the state aeronautics fund and be

appropriated by the legislature in the immediately succeeding

fiscal year.

CAPITAL OUTLAY

Sec. 901. (1) From federal-state-local project appropriations

contained in part 1 for the purpose of assisting political entities

and subdivisions of this state in the construction and improvement

of publicly used airports and landing fields within this state, the

state transportation department may permit the award of contracts

on behalf of units of local government for the authorized locations

not to exceed the indicated amounts, of which the state allocated

portion shall not exceed the amount appropriated in part 1.

(2) Political entities and subdivisions shall provide not less

than 5% of the cost of any project under this section, unless a

total nonfederal share greater than 10% is otherwise specified in

federal law. State money shall not be allocated until local money

is allocated. State money for any 1 project shall not exceed 1/3 of

the total appropriation in part 1 from state funds for airport

improvement programs.

(3) The Michigan aeronautics commission may take those steps

necessary to match federal money available for airport construction

and improvement within this state and to meet the matching

requirements of the federal government. Whether acting alone or

jointly with another political subdivision or public agency or with

this state, a political subdivision or public agency of this state

shall not submit to any agency of the federal government a project

application for airport planning or development unless it is

authorized in this act and the project application is approved by

the governing body of each political subdivision or public agency

making the application and by the Michigan aeronautics commission.

Sec. 902. Before the end of each fiscal year, the state

transportation department shall report to the house and senate

appropriations subcommittees on transportation and the house and

senate fiscal agencies on the status of airport improvement

projects funded in part 1 with the estimated dollars allocated for

each project. If there has to be a delay in reporting, the state

transportation department shall notify the house and senate

appropriations subcommittees on transportation in writing of the

date the report will be received.

Sec. 903. The appropriations in part 1 for capital outlay

shall be carried forward at the end of the fiscal year consistent

with the provisions of section 248 of the management and budget

act, 1984 PA 431, MCL 18.1248.

ONE-TIME APPROPRIATIONS

Sec. 1001. The appropriation in part 1 of $121,300,000.00 from

the state general fund is appropriated to the state trunkline

federal aid and road and bridge construction program and is

intended to ensure that the state is able to match all available

federal-aid highway funds.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2014-2015

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, 2015 for

the line items listed in part 1. The fiscal year 2014-2015

appropriations are anticipated to be the same as those for fiscal

year 2013-2014, except that the line items will be adjusted for

changes in caseload and related costs, federal fund match rates,

economic factors, and available revenue. These adjustments will be

determined after the January 2014 consensus revenue estimating

conference.

Sec. 1202. It is the intent of the legislature that the

department identify the amounts for normal retirement costs and

legacy retirement costs for the fiscal year ending on September 30,

2015 for the line items listed in part 1.