SB-1164, As Passed Senate, May 18, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 1164

 

 

 

 

 

 

 

 

 

 

 

     A bill to make appropriations for the state transportation

 

department and certain transportation purposes for the fiscal year

 

ending September 30, 2011; to provide for the imposition of fees;

 

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

 

prescribe requirements for certain railroad and bus facilities; to

 

prescribe certain powers and duties of certain state departments

 

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

 

expenditure of the appropriations.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

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

 

amounts listed in this part are appropriated for the state


Senate Bill No. 1164 as amended May 18, 2010

 

transportation department and certain state purposes designated in

 

this act for the fiscal year ending September 30, 2011, from the

 

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

 

appropriations in this part:

 

STATE TRANSPORTATION DEPARTMENT

 

APPROPRIATION SUMMARY

 

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

 

   Full-time equated classified positions........ 3,016.3

 

GROSS APPROPRIATION.................................... $ <<3,244,145,700>>

 

   Interdepartmental grant revenues:....................           878,300

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................           878,300

 

ADJUSTED GROSS APPROPRIATION........................... $ <<3,243,267,400>>

 

   Federal revenues:

 

DOT, federal transit act...............................        61,285,000

 

DOT, federal aviation administration...................       102,927,900

 

DOT-FHWA, highway research, planning, and construction.     1,060,167,700

 

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

 

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

 

Total federal revenues.................................     1,227,480,600

 

   Special revenue funds:

 

Local funds............................................        56,496,000

 

Total local revenues...................................        56,496,000

 

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

 

Blue Water Bridge fund.................................        14,882,300

 

Comprehensive transportation fund......................     <<232,049,400>>

 

Economic development fund..............................        42,134,000


Senate Bill No. 1164 as amended May 18, 2010

 

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

 

IRS debt service rebate................................         7,523,400

 

Local bridge fund......................................        30,061,300

 

Michigan transportation fund...........................       942,648,100

 

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

 

State aeronautics fund.................................        16,401,300

 

State trunkline fund...................................       666,615,600

 

Other state restricted funds...........................         2,975,400

 

Total other state restricted revenues..................   <<1,959,290,800>>

 

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

 

   Sec. 102. DEBT SERVICE

 

State trunkline........................................ $    198,853,000

 

Economic development...................................         9,173,400

 

Local bridge fund......................................         3,261,500

 

Blue Water Bridge......................................         2,216,400

 

Airport safety and protection plan.....................         3,456,000

 

Comprehensive transportation...........................        29,852,700

 

GROSS APPROPRIATION.................................... $    246,813,000

 

    Appropriated from:

 

   Federal revenues:

 

DOT-FHWA, highway research, planning, and construction.        45,832,100

 

   Special revenue funds:

 

Blue Water Bridge fund.................................         2,216,400

 

Comprehensive transportation fund......................        29,852,700

 

Economic development fund..............................         9,173,400

 

IRS debt service rebate................................         7,523,400

 

Local bridge fund......................................         3,261,500


 

State aeronautics fund.................................         3,456,000

 

State trunkline fund...................................       145,497,500

 

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

 

   Sec. 103. INTERDEPARTMENT AND STATUTORY CONTRACTS

 

   Michigan transportation fund (MTF)

 

MTF grant to department of natural resources and

 

   environment.......................................... $      1,132,600

 

MTF grant to department of state for collection of

 

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

 

MTF grant to department of treasury....................         8,383,600

 

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

 

   State trunkline fund (STF)

 

STF grant to department of attorney general............         2,867,300

 

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

 

STF grant to department of technology, management,

 

and budget...........................................         1,218,600

 

STF grant to department of state police................        10,203,200

 

STF grant to department of treasury....................           142,200

 

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

 

   State aeronautics fund (SAF)

 

SAF grant to department of attorney general............           169,500

 

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

 

SAF grant to department of technology, management,

 

   and budget...........................................            32,800

 

SAF grant to department of treasury....................            76,100

 

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

 

   Comprehensive transportation fund (CTF)


 

CTF grant to attorney general..........................           171,700

 

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

 

CTF grant to department of technology, management,

 

   and budget...........................................            37,400

 

CTF grant to department of treasury....................             6,500

 

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

 

GROSS APPROPRIATION.................................... $     51,212,200

 

    Appropriated from:

 

   Special revenue funds:

 

Comprehensive transportation fund......................           440,800

 

Michigan transportation fund...........................        29,720,500

 

State aeronautics fund.................................           448,000

 

State trunkline fund...................................        20,602,900

 

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

 

   Sec. 104. EXECUTIVE DIRECTION

 

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

 

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

 

Unclassified salaries.................................. $        583,800

 

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

 

Commission audit--31.3 FTE positions...................         3,485,600

 

GROSS APPROPRIATION.................................... $      5,695,800

 

    Appropriated from:

 

   Special revenue funds:

 

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

 

State trunkline fund...................................         4,069,400

 

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

 

   Sec. 105. BUSINESS SUPPORT


 

   Full-time equated classified positions........... 58.0

 

Business support services--49.0 FTE positions.......... $      6,001,400

 

Economic development and enhancement programs--9.0

 

   FTE positions........................................         1,146,100

 

Property management....................................         7,364,600

 

Worker's compensation..................................         1,784,600

 

GROSS APPROPRIATION.................................... $     16,296,700

 

    Appropriated from:

 

   Special revenue funds:

 

Comprehensive transportation fund......................         1,278,600

 

Economic development fund..............................           457,900

 

Michigan transportation fund...........................           197,000

 

State aeronautics fund.................................           612,500

 

State trunkline fund...................................        13,750,700

 

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

 

   Sec. 106. INFORMATION TECHNOLOGY

 

Information technology services and projects........... $      28,439,000

 

GROSS APPROPRIATION.................................... $     28,439,000

 

    Appropriated from:

 

   Federal revenues:

 

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

 

   Special revenue funds:

 

Blue Water Bridge fund.................................            48,300

 

Comprehensive transportation fund......................           192,400

 

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

 

Michigan transportation fund...........................           254,200

 

State aeronautics fund.................................           150,200


 

State trunkline fund...................................        27,236,200

 

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

 

   Sec. 107. FINANCE, CONTRACTS AND SUPPORT SERVICES

 

   Full-time equated classified positions.......... 250.5

 

Financial operations--87.0 FTE positions............... $      8,884,800

 

Contract services--53.6 FTE positions..................         4,813,500

 

Departmental services--41.9 FTE positions..............         4,845,900

 

Performance excellence--13.0 FTE positions.............         1,516,700

 

Welcome center operations--55.0 FTE positions..........         2,335,600

 

GROSS APPROPRIATION.................................... $     22,396,500

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG for accounting service center user charges.........           878,300

 

   Special revenue funds:

 

Michigan transportation fund...........................         1,753,300

 

State trunkline fund...................................        19,764,900

 

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

 

   Sec. 108. TRANSPORTATION PLANNING

 

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

 

Statewide planning services--124.0 FTE positions....... $     13,385,300

 

Data collection services--52.0 FTE positions...........         5,951,300

 

Specialized planning services and local studies........        16,229,100

 

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

 

GROSS APPROPRIATION.................................... $     36,054,500

 

    Appropriated from:

 

   Federal revenues:

 

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


Senate Bill No. 1164 as amended May 18, 2010

 

   Special revenue funds:

 

Comprehensive transportation fund......................           903,500

 

Michigan transportation fund...........................         5,947,500

 

State aeronautics fund.................................            13,700

 

State trunkline fund...................................         7,189,800

 

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

 

   Sec. 109. DESIGN AND ENGINEERING SERVICES

 

   Full-time equated classified positions........ 1,492.8

 

Engineering services--800.1 FTE positions.............. $     61,302,900

 

Program services--680.7 FTE positions..................        36,848,500

 

Intelligent transportation systems operations--12.0

 

   FTE positions........................................        10,378,300

 

GROSS APPROPRIATION.................................... $    108,529,700

 

    Appropriated from:

 

   Federal revenues:

 

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

 

   Special revenue funds:

 

Michigan transportation fund...........................         6,113,900

 

State trunkline fund...................................        78,886,000

 

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

 

   Sec. 110. HIGHWAY MAINTENANCE

 

   Full-time equated classified positions.......... 836.7

 

<<State trunkline operations--836.7 FTE positions......       112,604,500

Contract operations................................... $    123,474,100>>

 

GROSS APPROPRIATION.................................... $    236,078,600

 

    Appropriated from:

 

   Special revenue funds:

 

State trunkline fund...................................       236,078,600


 

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

 

   Sec. 111. ROAD AND BRIDGE PROGRAMS

 

State trunkline federal aid and road and bridge

 

   construction......................................... $    857,636,800

 

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

 

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

 

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

 

Local bridge program...................................        26,799,800

 

County road commissions................................       551,352,700

 

Cities and villages....................................       307,403,800

 

GROSS APPROPRIATION.................................... $  2,027,944,100

 

    Appropriated from:

 

   Federal revenues:

 

DOT-FHWA, highway research, planning, and construction.       961,770,500

 

   Special revenue funds:

 

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

 

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

 

Local bridge fund......................................        26,799,800

 

Michigan transportation fund...........................       894,756,500

 

State trunkline fund...................................       107,510,000

 

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

 

   Sec. 112. BLUE WATER BRIDGE

 

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

 

Blue Water Bridge operations--41.0 FTE positions....... $       5,510,300

 

GROSS APPROPRIATION.................................... $      5,510,300

 

    Appropriated from:

 

   Special revenue funds:


 

Blue Water Bridge fund.................................         5,510,300

 

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

 

   Sec. 113. TRANSPORTATION ECONOMIC DEVELOPMENT FUND

 

Forest roads........................................... $      5,040,000

 

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

 

Target industries/economic redevelopment...............         7,212,700

 

Urban county congestion................................         8,356,400

 

Rural county primary...................................         8,356,400

 

Nonprofit street railways..............................         1,000,000

 

GROSS APPROPRIATION.................................... $     32,465,500

 

    Appropriated from:

 

   Special revenue funds:

 

Economic development fund..............................        32,465,500

 

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

 

   Sec. 114. AERONAUTICS AND FREIGHT SERVICES

 

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

 

Airport improvement services--30.0 FTE positions....... $      3,030,100

 

Aviation services--26.0 FTE positions..................         4,353,700

 

Freight and safety services--28.0 FTE positions........         3,647,000

 

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

 

GROSS APPROPRIATION.................................... $     11,495,400

 

    Appropriated from:

 

   Special revenue funds:

 

Comprehensive transportation fund......................         1,577,900

 

Michigan transportation fund...........................         2,069,100

 

State aeronautics fund.................................         7,848,400

 

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


Senate Bill No. 1164 as amended May 18, 2010

 

   Sec. 115. PUBLIC TRANSPORTATION SERVICES

 

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

 

Passenger transportation services--46.0 FTE positions.. $       5,010,300

 

GROSS APPROPRIATION.................................... $      5,010,300

 

    Appropriated from:

 

   Federal revenues:

 

DOT, federal transit act...............................           862,100

 

   Special revenue funds:

 

Comprehensive transportation fund......................         3,938,500

 

Michigan transportation fund...........................           209,700

 

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

 

   Sec. 116. BUS TRANSIT DIVISION: STATUTORY OPERATING

 

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

 

Nonurban operating/capital.............................        22,787,900

 

GROSS APPROPRIATION.................................... $    189,411,900

 

    Appropriated from:

 

   Federal revenues:

 

DOT, federal transit act...............................        21,987,900

 

   Special revenue funds:

 

Local funds............................................           800,000

 

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

 

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

 

   Sec. 117. INTERCITY PASSENGER AND FREIGHT

 

Freight property management............................ $        950,000

 

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

 

Intercity services.....................................       <<7,250,000>>

 

Rail passenger service.................................        11,667,000


Senate Bill No. 1164 as amended May 18, 2010

 

Freight preservation and development...................         2,691,400

 

Marine passenger services..............................           340,000

 

Terminal development...................................           127,500

 

GROSS APPROPRIATION.................................... $   <<23,494,100>>

 

    Appropriated from:

 

   Federal revenues:

 

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

 

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

 

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

 

   Special revenue funds:

 

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

 

Comprehensive transportation fund......................      <<11,844,100>>

 

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

 

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

 

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

 

   Sec. 118. PUBLIC TRANSPORTATION DEVELOPMENT

 

Specialized services................................... $      6,922,700

 

Municipal credit program...............................         1,700,000

 

Bus capital............................................        41,300,000

 

Van pooling............................................          <<56,900>>

 

Service initiatives....................................         1,400,000

 

Transportation to work.................................         7,152,300

 

GROSS APPROPRIATION.................................... $   <<58,531,900>>

 

    Appropriated from:

 

   Federal revenues:

 

DOT, federal transit act...............................        33,935,000

 

   Special revenue funds:


Senate Bill No. 1164 as amended May 18, 2010

 

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

 

Comprehensive transportation fund......................      <<15,396,900>>

 

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

 

   Sec. 119. CAPITAL OUTLAY

 

   (1) BUILDINGS AND FACILITIES

 

Salt storage buildings and containment control

 

   systems - contract agencies.......................... $      1,000,000

 

Port Huron replacement welcome center, inspection

 

   station, Blue Water Bridge administration and

 

   maintenance satellite facilities.....................        11,518,300

 

Miscellaneous special maintenance, remodeling, and

 

   additions............................................         3,001,500

 

GROSS APPROPRIATION.................................... $     15,519,800

 

    Appropriated from:

 

   Federal revenues:

 

DOT-FHWA, highway research, planning, and construction.         6,514,800

 

   Special revenue funds:

 

Other state restricted funds...........................         2,975,400

 

State trunkline fund...................................         6,029,600

 

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

 

   (2) AIRPORT IMPROVEMENT PROGRAMS

 

Airport safety, protection, and improvement program.... $     123,246,400

 

GROSS APPROPRIATION.................................... $    123,246,400

 

    Appropriated from:

 

   Federal revenues:

 

DOT, federal aviation administration...................       102,927,900

 

   Special revenue funds:


 

Local funds............................................        16,446,000

 

State aeronautics fund.................................         3,872,500

 

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

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

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

 

constitution of 1963, total state spending from state resources

 

under part 1 for fiscal year 2010-2011 is $1,966,266,900.00 and

 

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

 

government for fiscal year 2010-2011 is $1,141,628,800.00. The

 

itemized statement below identifies appropriations from which

 

spending to units of local government will occur:

 

DEPARTMENT OF TRANSPORTATION

 

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

 

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

 

Economic development fund..............................        31,465,500

 

Grants to cities and villages..........................       307,403,800

 

Grants to county road commissions......................       551,352,700

 

Local bridge fund......................................        26,799,800

 

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

 

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

 

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

 

Bus capital............................................         8,000,000

 

Marine passenger service...............................           340,000


Senate Bill No. 1164 as amended May 18, 2010

 

Terminal development...................................           127,500

 

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

 

Municipal credit program...............................         1,700,000

 

Specialized services...................................         3,437,700

 

Service initiatives....................................            50,000

 

Transportation to work.................................         2,152,300

 

Salt/sand storage and secondary containment

 

facilities - contract agency locations.................         1,000,000

 

Airport safety, protection, and improvement

 

program................................................         3,872,500

 

Total payments to local units of government............ $ <<1,141,747,400>>

 

     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) "AASHTO" means American association of state highway and

 

transportation officials.

 

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

 

     (c) "CTF" means comprehensive transportation fund.

 

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

 

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

 

transportation.

 

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

 

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

 

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

 

administration, high-speed ground transportation.

 

     (i) "EDF" means economic development fund.


 

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

 

     (k) "IRS" means internal revenue service.

 

     (l) "MTF" means Michigan transportation fund.

 

     (m) "RIF" means recreation improvement fund.

 

     (n) "SAF" means state aeronautics fund.

 

     (o) "STF" means state trunkline fund.

 

     Sec. 204. The civil service commission shall bill the

 

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

 

the 1% charge authorized by section 5 of article XI of the state

 

constitution of 1963. Payments shall be made for the total amount

 

of the billing by the end of the second fiscal quarter.

 

     Sec. 205. (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 1 position

 

to another within a department.

 

     (2) The state budget director may 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, causes loss of revenue to the

 

state, would result in the inability of the state to receive

 

federal funds, or would necessitate additional expenditures that

 

exceed any savings from maintaining a vacancy. The state budget

 

director shall report quarterly 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 quarter and the reasons to justify the exception.

 

     Sec. 206. (1) In addition to the funds appropriated in part 1,

 

there is appropriated an amount not to exceed $200,000,000.00 for

 

federal contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in this act 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 act 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 act

 

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 act

 

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

 

PA 431, MCL 18.1393.

 

     Sec. 207. When beginning any effort to privatize, the


 

department shall submit a complete project plan to the house of

 

representatives and senate appropriations subcommittees on

 

transportation, the state budget office, and the house and senate

 

fiscal agencies. The plan shall include the rationale for

 

privatization, including a cost-benefit analysis if appropriate.

 

The evaluation shall be completed and submitted to the appropriate

 

senate and house of representatives appropriations subcommittees

 

and the senate and house fiscal agencies. As used in this section,

 

"privatize" or "privatization" means the transfer of state highway

 

maintenance or activities currently performed by department forces,

 

or by boards of county road commissioners, county boards of

 

commissioners, or local units of government under contract with the

 

department, to private contractors.

 

     Sec. 208. Unless otherwise specified, the department 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 of each department receiving

 

appropriations in part 1 shall take all reasonable steps to ensure

 

businesses in deprived and depressed communities compete for and

 

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

 

director shall encourage firms with which the department contracts

 

to subcontract with certified businesses in deprived and depressed

 

communities for services, supplies, or both.

 

     Sec. 211. The departments and state agencies receiving

 

appropriations under this act shall receive and retain copies of

 

all reports funded from appropriations in part 1. These departments

 

and state agencies shall follow federal and state guidelines for

 

short-term and long-term retention of these reports and records.

 

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

 

information technology, the department shall pay user fees to the

 

department of technology, management, and budget for technology-

 

related services and projects. The user fees shall be subject to

 

provisions of an interagency agreement between the department and

 

the department of technology, management, and budget.

 

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

 

state, out-of-state travel shall be limited to situations in which

 

1 or more of the following conditions apply:

 

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

 

for law enforcement purposes.

 

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

 

Michigan citizens or visitors or to assist other states in similar


 

circumstances.

 

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

 

increase state revenues, including protecting existing federal

 

funds or securing additional federal funds.

 

     (d) The travel is necessary to comply with federal

 

requirements.

 

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

 

staff that is not available within this state.

 

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

 

funds.

 

     (2) If out-of-state travel is necessary but does not meet 1 or

 

more of the conditions in subsection (1), the state budget director

 

may grant an exception to allow the travel. Any exceptions granted

 

by the state budget director shall be reported on a monthly basis

 

to the house and senate appropriations committees.

 

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

 

shall prepare a travel report listing all travel by classified and

 

unclassified employees outside this state in the immediately

 

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

 

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

 

submitted to the chairs and members of the house and senate

 

appropriations committees, the fiscal agencies, and the state

 

budget director. The report shall include the following

 

information:

 

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

 

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

 

     (b) The destination of each travel occurrence.


 

     (c) The dates of each travel occurrence.

 

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

 

occurrence.

 

     (e) The transportation and related costs of each travel

 

occurrence, including the proportion funded with state general

 

fund/general purpose revenues, the proportion funded with state

 

restricted revenues, the proportion funded with federal revenues,

 

and the proportion funded with other revenues.

 

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

 

immediately preceding fiscal year.

 

     Sec. 261. A department or state agency shall not take

 

disciplinary action against an employee for communicating with a

 

member of the legislature or their staff.

 

     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, 2011 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. 264. The department shall continue its efforts to

 

implement continuous process improvement programs. On or before

 

March 1, 2011, the department shall report to the state budget

 

director, the house and senate appropriations subcommittees on

 

transportation, and the house and senate fiscal agencies on

 

department activities to increase efficiency in the delivery of

 

core programs. The report shall include a description of activities

 

of the performance excellence section in identifying and

 

implementing business process improvements.

 

     Sec. 265. The department shall not approve the travel of more

 

than 1 departmental employee to a specific professional development

 

conference or training seminar that is located outside of this

 

state unless a professional development conference or training

 

seminar that is funded by a federal or private funding source and

 

requires more than 1 person from a department to attend or the

 

conference or training seminar includes more than 1 issue in which


 

1 employee from the department does not have expertise.

 

     Sec. 266. From the funds appropriated in part 1, the

 

department shall use an amount not to exceed $10,000.00 to develop,

 

post, and maintain, on a publicly accessible Internet site, all

 

expenditures made by the agency within a fiscal year. The posting

 

must include the purpose for which each expenditure is made. The

 

department shall not be required to hire additional employees to

 

comply with this section.

 

 

 

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. The department shall permit space on public

 

passenger transportation properties to be occupied by public or

 

private tenants on a competitive market rate basis. The department

 

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

 

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

 

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

 

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

 

services provided to the department and to transportation funds by

 

other state departments shall be expended from transportation funds

 

pursuant to annual contracts between the department and those other

 

state departments. The contracts shall be executed prior to the

 

expenditure or obligation of those funds. The contracts shall

 

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

 

each state department:


 

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

 

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

 

transportation funds and financed with transportation funds.

 

     (c) Detailed cost allocation methods appropriate to the type

 

of services being provided and the activities financed with

 

transportation funds.

 

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

 

Michigan comprehensive annual financial report, each state

 

department receiving funding pursuant to an 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 (4).

 

     (3) In addition to the requirements of subsection (2), the

 

state treasurer shall develop a cost allocation plan to identify

 

the actual costs of work based on time and effort performed by the

 

Michigan department of treasury for state-restricted transportation

 

funds. The cost allocation plan shall specifically identify the

 

costs of collecting constitutionally restricted motor fuel taxes.

 

The cost allocation plan shall be submitted to the senate and house

 

of representatives standing committees on appropriations


 

subcommittees on general government, the senate and house fiscal

 

agencies, the auditor general, and the state budget director by

 

November 1. The cost allocation plan shall be subject to audit by

 

the auditor general.

 

     (4) 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. The department and local road agencies that receive

 

appropriations under this act shall pursue compliance with contract


 

specifications for construction and maintenance of state highways

 

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

 

for until it complies with contract requirements. Contractors with

 

unsatisfactory performance ratings shall be restricted from future

 

bidding through the prequalification process established by the

 

department or a local road agency. The department, county road

 

commissions, and cities and villages shall report to the house of

 

representatives and senate appropriations subcommittees on

 

transportation, the senate and house fiscal agencies, and the state

 

budget director on their respective activities, including those

 

with respect to any applicable warranties, under this section.

 

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

 

administrative costs and provide the maximum funding possible for

 

construction projects.

 

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

 

copies of the agenda and approved minutes of monthly transportation

 

commission meetings to the members of the house and senate

 

appropriations subcommittees on transportation, the house and

 

senate fiscal agencies, and the state budget director.

 

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

 

and unexpended balance in the state trunkline fund shall remain in

 

the state trunkline fund and shall carry forward and is

 

appropriated for federal aid road and bridge programs for projects

 

contained in the annual state transportation program.

 

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

 

department may increase a state infrastructure bank program and

 

grant or loan funds in accordance with regulations of the state


 

infrastructure bank program of the United States department of

 

transportation. The state infrastructure bank is to be administered

 

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

 

sustaining resource for financing transportation infrastructure

 

projects.

 

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

 

received by the state as federal grants, repayment of state

 

infrastructure bank loans, or other reimbursement or revenue

 

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

 

and interest earned on that money shall be deposited in the

 

revolving state infrastructure bank fund and shall be available for

 

transportation infrastructure projects. At the close of the fiscal

 

year, any unencumbered funds remaining in the state infrastructure

 

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

 

succeeding fiscal year.

 

     Sec. 314. The department shall provide a report prepared by

 

the department's internal auditor on the activities of the internal

 

auditor for the previous fiscal year. The report shall be due on

 

February 1 of each year and shall be submitted to the senate and

 

house of representatives appropriations committees, the senate and

 

house fiscal agencies, the director of the state budget office, and

 

the auditor general. This report shall include a list of all of the

 

following:

 

     (a) All work activities conducted by the internal auditor,

 

including a listing of all audits, reviews, and investigations.

 

     (b) The time charged to each work activity, including time

 

charged to each audit, review, or investigation.


 

     (c) A listing of which audits, reviews, and investigations

 

have been completed and which audits, reviews, and investigations

 

have had reports of the results issued.

 

     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. 324. From the funds appropriated in part 1, $500,000.00

 

from the state trunkline fund shall be used for enhanced

 

construction zone traffic law enforcement and the "give 'em a

 

brake" campaign. The funding shall be used to reimburse law

 

enforcement agencies for costs associated with construction zone

 

traffic enforcement. The funding shall be provided based on

 

approved memoranda of understanding between the department and

 

participating law enforcement agencies.

 

     Sec. 334. The department shall continue its program to

 

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

 

and local road construction projects. This program shall comprise,

 

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

 

minority-owned firms of department competitive bidding processes

 

and requirements, and an assessment of the availability of surety

 

for women- and minority-owned businesses. The department shall

 

report by September 30 of each year to the house and senate

 

appropriations subcommittees on transportation and the house and

 

senate fiscal agencies of its progress in complying with this

 

section.


 

     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. 358. On a bimonthly basis, the department shall report on

 

the number of FTEs in pay status by civil service classification to

 

the house and senate appropriations subcommittees on transportation

 

and the house and senate fiscal agencies.

 

     Sec. 374. The department shall produce and distribute all

 

employee newsletters electronically.

 

     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. 376. No later than March 1 of each year, the department

 

shall report to the senate and house appropriations subcommittees

 

on transportation on the status of the 17 projects that were

 

initially deferred in the department's 5-year plan in 2003 and

 

subsequently restored.

 

     Sec. 383. (1) The department shall prepare a quarterly 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.

 

     (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. On or before March 1, 2011, the department shall

 

report 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

 

Detroit River International Crossing. The department shall not make

 

any expenditure, commit to an expenditure, or bind the state to an

 

expenditure, related to the Detroit River International Crossing

 

(DRIC) unless the legislature has enacted specific enabling

 

legislation to allow for the construction of DRIC.


 

     Sec. 393. The department shall promote best practices for

 

public transportation services in this state, including, but not

 

limited to, the following:

 

     (a) Transit vehicle rehabilitation to reduce life-cycle cost

 

of public transportation through mid-life rehabilitation of transit

 

buses.

 

     (b) Coordination with the Michigan economic development

 

corporation to promote transition of bus fleets hybrid transit

 

vehicles with a view to promotion of fuel economy.

 

     (c) Cooperation between entities using transit, including

 

school districts, cities, townships, and counties with a view to

 

promoting cost savings through joint purchasing of fuel and other

 

procurements.

 

     (d) Coordination of transportation dollars among state

 

departments which provide transit-related services, including the

 

department of human services and the department of community

 

health. Priority should be given to use of public transportation

 

services where available.

 

     (e) Promotion of intelligent transportation services for buses

 

that incorporate computer and navigation technology to make

 

transit systems more efficient, including stoplight coordinating,

 

vehicle tracking, data tracking, and computerized scheduling.

 

     Sec. 394. (1) From the funds appropriated in part 1, the

 

department shall conduct a study, in consultation with the county

 

road association of Michigan and the Michigan municipal league, of

 

the current statutory formulae for the distribution of state and

 

federal revenue for surface transportation programs. The study


 

shall include an analysis of alternative distribution strategies

 

and a discussion of the extent to which current and alternative

 

distribution formulae contribute to statewide transportation goals.

 

The study shall include all of the following:

 

     (a) A discussion of alternative distribution strategies for

 

state and local road and street programs, including distribution

 

methods based on vehicle miles traveled as compared to lane miles.

 

The study shall include a comparison of vehicle miles traveled to

 

lane miles for the sampled geographical areas as well as

 

comparisons to other states and an evaluation of best practices.

 

     (b) A discussion of alternative methods of distributing state

 

operating assistance for local bus transit programs, including an

 

analysis of incentives for those agencies which demonstrate

 

efficient use of resources and increasing ridership levels.

 

     (c) An analysis of the fiscal impact of alternative strategies

 

to individual transit and road agencies.

 

     (2) The department shall deliver a report on the findings of

 

the study by March 1, 2011 to the house and senate appropriations

 

subcommittees on transportation, the house and senate

 

transportation committees, the house and senate fiscal agencies,

 

and the state budget director.

 

     Sec. 395. It is the intent of the legislature that the

 

department assume jurisdiction of county road C-56 between US-31 at

 

Charlevoix and M-75 at Boyne City in Charlevoix County.

 

     Sec. 398. (1) The appropriation included in part 1 to a

 

nonprofit street railway is pursuant to section 10e(22) of 1951 PA

 

51, MCL 247.660e. A nonprofit street railway receiving


 

appropriations from part 1 shall submit a quarterly report to the

 

department, including but not limited to, the construction

 

spending, operating cost, revenue and ridership, for the prior

 

fiscal quarter no later than 60 days after the end of the quarter.

 

     (2) In addition to the appropriation in part 1 to a nonprofit

 

street railway, there is appropriated $150.00 from the

 

transportation economic development fund to provide matching funds

 

for transit-oriented development projects, including, but not

 

limited to, high-speed rail, commuter and light rail, or fixed-

 

guideway projects.

 

     Sec. 399. (1) From the funds appropriated in part 1 for

 

welcome centers, the department shall continue to maintain

 

operation of these facilities as standard rest areas. Should the

 

appropriation in part 1 be insufficient to continue operation of

 

these 14 facilities as rest areas, then the department may

 

permanently or seasonally close the necessary number of facilities

 

to reflect available funds. When considering a welcome center for

 

closure, the department shall only close those centers with the

 

lowest annual attendance rates according to the records maintained

 

by Travel Michigan.

 

     (2) The department, in coordination with Travel Michigan,

 

shall develop an alternative to state funding and operation of the

 

welcome centers, including, but not limited to, relocating the

 

centers to alternative sites to allow for private entities to

 

operate similar facilities.

 

 

 

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 the state shall

 

be allocated to transportation programs administered by local

 

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

 

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

 

for federal aid funding in a state transportation improvement

 

program, may enter into a voluntary buyout agreement with the

 

department or with another local road agency to exchange the

 

federal aid with state restricted transportation funds as agreed to

 

by the respective parties. The state restricted transportation

 

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

 

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

 

 

 

MICHIGAN TRANSPORTATION FUND

 

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

 

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

 

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

 

police is deposited in the Michigan transportation fund.


 

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

 

make investigations of the disposition of all state funds received

 

by county road commissions or county boards of commissioners, as

 

applicable, and cities and villages for transportation purposes to

 

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

 

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

 

commissioners, as applicable, and cities and villages shall make

 

available to the department of treasury the pertinent records for

 

the audit.

 

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

 

economic development and local bridge programs shall not lapse at

 

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

 

for the purposes for which appropriated in accordance with 1987 PA

 

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

 

247.660.

 

     (2) Interest earned in the department of transportation

 

economic development fund and local bridge fund shall remain in the

 

respective funds and shall be allocated to the respective programs

 

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

 

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

 

department of transportation economic development fund and local

 

bridge fund 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 (MTF)

 

shall be distributed to the comprehensive transportation fund

 

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

 

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

 

accordance with this 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. 602. If the department uses manufactured pipe for road

 

construction drainage, the department shall require that pipe used

 

under certain load-bearing conditions beneath the roadway meets the

 

standards established by the American society for testing and


 

materials (ASTM) or American association of state highway and

 

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

 

mandrel test for manufactured pipe 60 days after installation and

 

provide a summary of the results of these inspections to the house

 

of representatives and senate appropriations subcommittees on

 

transportation and house and senate fiscal agencies.

 

     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. 608. From the amounts appropriated in part 1 for forest

 

roads from the transportation economic development fund, $40,000.00

 

shall be used for the purpose of establishing 2 additional truck

 

inspection stations. The department shall work directly with

 

representatives of the timber industry to educate truck drivers on

 

the use of the stations. The department shall report on the status

 

of this program.

 

     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. 615. It is the intent of the legislature that the

 

department shall proceed with the construction of a full

 

interchange at the intersection of M-48 and I-75 in Chippewa

 

County. It is the intent of the legislature that the department

 

develop design plans and award the construction contract for this

 

project during the fiscal year ending September 30, 2011.

 

     Sec. 654. It is the intent of the legislature that the

 

Mackinac Bridge Authority work to protect the long-term viability

 

of the Mackinac Bridge.

 

     Sec. 656. It is the intent of the legislature that the

 

department upgrade that section of M-49 from M-99 to US-12 to

 

standards necessary for designation as a designated highway as

 

provided under sections 717 and 718 of the Michigan vehicle code,

 

1949 PA 300, MCL 257.717 and 257.718, and for inclusion as a

 

"green" special designated highway on the department's truck

 

operator's map.

 

     Sec. 658. It is the intent of the legislature that the

 

department proceed with the reconstruction of the interchange at I-


Senate Bill No. 1164 as amended May 18, 2010

 

196 and Phoenix Road in South Haven.

 

     Sec. 659. For pavement projects for which there are no

 

Michigan actual historic project maintenance, repair, and

 

resurfacing schedules and costs as recorded by the pavement

 

management system, the department may use actual historical and

 

comparable data for equivalent designs from states with similar

 

climates, soil structures, and vehicle traffic.

 

     Sec. 660. The legislature encourages the department to examine

 

the use of alternative road surface materials, including recycled

 

materials, and to develop criteria and specifications for its use

 

in both department-managed and contracted projects.

 

     Sec. 661. It is the intent of the legislature that the

 

department complete engineering design work and right-of-way

 

acquisitions for the proposed expressway project along US-127 from

 

St. Johns in Clinton County to Ithaca in Gratiot County.

 

     Sec. 662. The department shall work with the Graafschap Fire

 

Department and Laketown Township to develop a gated, limited access

 

point along US 31 in Allegan County in order to improve emergency

 

response times along this highway.

 

     Sec. 663. To provide a portion of the funds appropriated in

 

part 1 for road and bridge programs, it is the intent of the

 

legislature to do the following:

 

     (a) Transfer <<$15,877,500.00>> of the balance of the

 

transportation economic development fund, established in section 2

 

of 1987 PA 231, MCL 247.902, to the state trunk line fund,

 

established in section 11 of 1951 PA 51, MCL 247.661.

 

     (b) Transfer $12,000,000.00 of driver license fee revenue


 

received during state fiscal year 2010-2011 for deposit in the

 

transportation economic development fund, established in section 2

 

of 1987 PA 231, MCL 247.902, to the state trunk line fund,

 

established in section 11 of 1951 PA 51, MCL 247.661.

 

     (c) Transfer $5,572,900.00 in sales tax revenue deposited

 

under section 25(4)(a) of the general sales tax act, 1933 PA 167,

 

MCL 205.75, in the comprehensive transportation fund, established

 

in section 10b of 1951 PA 51, MCL 247.660b, to the state trunk line

 

fund, established in section 11 of 1951 PA 51, MCL 247.661.

 

     Sec. 664. It is the intent of the legislature that if actual

 

state-restricted revenue deposited to the Michigan transportation

 

fund exceeds the revenue estimates upon which the appropriations in

 

part 1 of this act were based, the department shall give priority

 

to reinstating delayed and deferred projects.

 

 

 

COMPREHENSIVE TRANSPORTATION FUND

 

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

 

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

 

deposited in the comprehensive transportation fund under section

 

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

 

an intercity bus equipment fund for appropriation for the purchase

 

and repair of intercity bus equipment. Proceeds received by the

 

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

 

intercity bus equipment fund for appropriation for the purchase and

 

repair of intercity bus equipment. Security deposits from the lease

 

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

 

of the equipment under terms of the lease agreement are deposited


 

in an intercity bus equipment fund for appropriation for the repair

 

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

 

funds remaining in the intercity bus equipment fund shall remain in

 

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

 

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

 

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

 

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

 

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

 

fund created by section 17 of the state transportation preservation

 

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

 

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

 

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

 

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

 

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

 

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

 

bus per year for their use.

 

     Sec. 709. (1) The following bus routes are designated as an

 

essential corridor in Michigan:

 

   Between St. Ignace and Escanaba      US-2

 

   Between Escanaba and Duluth          US-2 through Ironwood to the

 

                                           state line

 

   Between Calumet and Escanaba         US-41

 

   Between Escanaba and Milwaukee       US-41 through Menominee to

 

                                           the state line

 

   Between St. Ignace and              

 

     Sault Ste. Marie                   I-75

 

   Between Detroit and Chicago          I-94 from Detroit to the    

 

                                           state line

 

   Between Detroit and Muskegon         I-96

 

   Between Grand Rapids, Holland,      

 

     and Benton Harbor                  I-196 to I-94

 

   Between Muskegon and Grand          

 

     Rapids                             US-31, I-96

 

   Between Detroit and Bay City         I-75

 

   Between Bay City and Mount          

 

     Pleasant                           US-10, M-20

 

   Between Jackson and Traverse         US-127, US-27, I-75,

 

     City                                 Grayling,


 

                                           Gaylord, M-72 to Traverse

 

                                           City

 

   Between Jackson and                  I-69, I-94 to the state line

 

     Indianapolis                         through Albion, Marshall,

 

                                           and Coldwater

 

   Between Houghton Lake and           

 

     Cadillac                           M-55 and M-66

 

   Between Detroit and Toledo           I-75 to the state line

 

   Between the Indiana state line      

 

     and Traverse City                  US-31 and I-196

 

   Between Detroit and Port Huron       I-375 and I-94

 

   Between Toledo and Bay City          US-23, I-75, and I-675, I-75

 

   Between Bay City and Chicago         I-75, Flint, I-69, I-94,

 

                                           Battle Creek, I-94 to the

 

                                           state line

 

   Between Flint and Lansing            I-69, M-21, Owosso, M-52,

 

                                           I-69

 

   Between Bay City and St. Ignace      I-75, US-23

 

   Between Grand Rapids and             US-131, Cadillac, M-115,

 

     St. Ignace                           Mesick, M-37 to Traverse

 

                                           City, US-31, Acme, M-72,

 

                                           Kalkaska, US-131, Boyne

 

                                           Falls, M-75, Walloon Lake,

 

                                           US-131, Petoskey, US-31,

 

                                           I-75, St. Ignace

 

   Between Kalamazoo and Grand         

 

     Rapids                             US-131


 

     (2) Any changes to the essential corridor list in subsection

 

(1) shall be approved by the house and senate appropriations

 

subcommittees on transportation.

 

     (3) No entity shall receive operating assistance for a

 

scheduled regular route service which is competing with another

 

private or public carrier over the same route.

 

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

 

comprehensive transportation fund for rail passenger service, the

 

department shall negotiate with a rail carrier to provide rail

 

service between Grand Rapids and Chicago and between Port Huron and

 

Chicago, consistent with the other provisions of this section.

 

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

 

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

 

resolve customer complaints and shall make the information

 

available to the department, the house and senate appropriations

 

subcommittees on transportation, and the house and senate fiscal

 

agencies.

 

     (3) Future state support for the service between Grand Rapids

 

and Chicago and Port Huron and Chicago is dependent on the

 

department's ability to provide a plan and a contract for services

 

that increase ridership and revenue, reduce operating costs, and

 

improve on-time performance.

 

     (4) No state subsidy shall be provided from the funds

 

appropriated in part 1 if the chosen rail carrier is Amtrak and

 

Amtrak discontinued service or any portion of the service between

 

Port Huron and Chicago or Grand Rapids and Chicago during the

 

preceding fiscal year, unless the discontinuance of service was for


 

track maintenance or was caused by acts of God.

 

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

 

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

 

provided throughout Michigan. The department shall continue to work

 

with local units of government to address the unmet transit needs

 

in Michigan.

 

     Sec. 721. For federal transit administration bus acquisition

 

capital grants matched with CTF funds appropriated in part 1,

 

transit agencies shall have 4 years from the federal approval date

 

to carry out their projects. Contract line items unobligated 4

 

years after the federal approval date may be matched with CTF funds

 

only up to 15% in the fifth and subsequent years. "Unobligated"

 

means any line item in the contract that is not committed to a

 

third party or purchase order. A waiver shall be granted by the

 

department for an additional year with documented justification

 

from the transit agency accompanied by a resolution from the board

 

or authority seeking a waiver. If a transit agency does not carry

 

out a line item activity in a specific authorization and the

 

transit agency requests funds in a new authorization for that same

 

activity, the line item shall be matched at up to 15%. This section

 

applies only to bus acquisition capital grants. Lapsed funds under

 

this section shall remain in the CTF. This section does not take

 

effect if failure to comply with the provisions of this section by

 

a transit agency occurs due to the inability of the state to

 

provide sufficient matching funds for available federal funding

 

earmarked to that transit agency for the purpose of bus capital

 

acquisition. The department shall report to the appropriations


 

subcommittees on transportation of the senate and house of

 

representatives if the state is unable to provide sufficient

 

matching funds for this section to take effect.

 

     Sec. 731. 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. 734. (1) The department shall ensure that all public

 

transit agencies provide the highest quality public transit service

 

by moving people in a cost-effective, safe, and user-friendly

 

manner that maintains and attracts residents and businesses.

 

     (2) Public transit agencies receiving funds under part 1 shall

 

do all of the following:

 

     (a) Provide efficient, cost-effective, safe, well-maintained,

 

reliable, customer-driven transportation services.

 

     (b) Provide a quality work environment that has and fulfills

 

employee performance, productivity, and development standards.

 

     (c) Identify and capture all available funding or create cost-

 

effective programs to eliminate debt and have a balanced budget.

 

     (d) Maintain sufficient local and community funding.

 

     (e) Support business development by providing transportation

 

to areas of employment and commerce, emerging or established

 

businesses, and health care facilities.

 

     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.


 

     Sec. 741. The department shall report by March 1, 2011 to the

 

house of representatives and senate appropriations subcommittees on

 

transportation, the house and senate fiscal agencies, and the state

 

budget director on progress of operations on the Ann Arbor and NW

 

Michigan railroad, particularly concerning any use of the track

 

infrastructure for the purpose of supporting a passenger train

 

speed of 59 miles per hour.

 

     Sec. 745. From the funds appropriated in part 1 for

 

comprehensive transportation fund debt service up to $13,200,000.00

 

shall be transferred to a restricted account in compliance with the

 

internal revenue code of 1986, as required by comprehensive

 

transportation refunding bonds series 2009.

 

 

 

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

 

total nonfederal share greater than 5% is otherwise specified in

 

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

 

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

 

the total appropriation in part 1 from state funds for airport

 

improvement programs.

 

     (3) The Michigan aeronautics commission may take those steps

 

necessary to match federal money available for airport construction

 

and improvement within this state and to meet the matching

 

requirements of the federal government. Whether acting alone or

 

jointly with another political subdivision or public agency or with

 

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

 

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

 

application for airport planning or development unless it is

 

authorized in this 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 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.

 

     Sec. 904. (1) The director shall allocate lump-sum

 

appropriations made in this act consistent with statutory

 

provisions and the purposes for which funds were appropriated.

 

Lump-sum allocations shall address priority program or facility

 

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

 

construction, remodeling and addition, special maintenance, major

 

special maintenance, energy conservation, and demolition.

 

     (2) The state budget director may authorize that funds

 

appropriated for lump-sum appropriations and designated as work

 

project appropriations shall be available for no more than 3 fiscal

 

years following the fiscal year in which the original appropriation

 

was made. Any remaining balance from allocations made in this

 

section shall lapse to the fund from which it was appropriated

 

pursuant to the lapsing of funds as provided in the management and

 

budget act, 1984 PA 431, MCL 18.1101 to 18.1594.