SB-0265,As Passed Senate,May 8, 2003                                                                                          

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                  SUBSTITUTE FOR                                

                                                                                

                               SENATE BILL NO. 265                              

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to make appropriations for the state transportation                        

                                                                                

    department and certain transportation purposes for the fiscal year          

                                                                                

    ending September 30, 2004; 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:                    

                                                                                

1                                   PART 1                                      

                                                                                

2                          LINE-ITEM APPROPRIATIONS                             

                                                                                

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

                                                                                

4   amounts listed in this part are appropriated for the state                  

                                                                                

5   transportation department and certain state purposes designated in          

                                                                                

6   this act for the fiscal year ending September 30, 2004, from the funds      

                                                                                


                                                                                

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

                                                                                

2   appropriations in this part:                                                

                                                                                

3   STATE TRANSPORTATION DEPARTMENT                                             

                                                                                

4   APPROPRIATION SUMMARY:                                                      

                                                                                

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

                                                                                

6       Full-time equated classified positions......2,998.0                     

                                                                                

7     GROSS APPROPRIATION................................. $   3,155,996,400    

                                                                                

8       Interdepartmental grant revenues:                                       

                                                                                

9     Total interdepartmental grants and intradepartmental                      

                                                                                

10      transfers.........................................                 0    

                                                                                

11    ADJUSTED GROSS APPROPRIATION........................ $   3,155,996,400    

                                                                                

12      Federal revenues:                                                       

                                                                                

13    DOT, federal transit act............................        52,600,000    

                                                                                

14    DOT-FHWA, highway research, planning, and                                 

                                                                                

15      construction......................................       909,555,100    

                                                                                

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

                                                                                

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

                                                                                

18    Total federal revenues..............................       965,255,100    

                                                                                

19      Special revenue funds:                                                  

                                                                                

20    Local funds.........................................         5,800,000    

                                                                                

21    Total local revenues................................         5,800,000    

                                                                                

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

                                                                                

23    Blue Water Bridge fund..............................        15,813,000    

                                                                                

24    Comprehensive transportation fund...................       226,709,300    

                                                                                

25    Economic development fund...........................        57,275,000    

                                                                                

26    Intercity bus equipment fund........................         1,000,000    

                                                                                

27    Michigan transportation fund........................     1,123,458,200    


                                                                                

1     Rail preservation fund..............................         2,000,000    

                                                                                

2     State aeronautics fund..............................        12,777,000    

                                                                                

3     State trunkline fund................................       745,908,800    

                                                                                

4     Total other state restricted revenues...............     2,184,941,300    

                                                                                

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

                                                                                

6       Sec. 102.  DEBT SERVICE                                                     

                                                                                

7     State trunkline..................................... $      79,246,800    

                                                                                

8     Economic development................................        16,804,800    

                                                                                

9     Critical bridge.....................................         3,000,000    

                                                                                

10    Blue Water Bridge...................................         2,503,600    

                                                                                

11    Airport safety and protection plan..................         5,000,000    

                                                                                

12    Comprehensive transportation........................        28,720,500    

                                                                                

13    GROSS APPROPRIATION................................. $     135,275,700    

                                                                                

14        Appropriated from:                                                    

                                                                                

15      Federal revenues:                                                       

                                                                                

16    DOT-FHWA, highway research, planning, and                                 

                                                                                

17      construction......................................        24,000,000    

                                                                                

18      Special revenue funds:                                                  

                                                                                

19    Blue Water Bridge fund..............................         2,503,600    

                                                                                

20    Comprehensive transportation fund...................        28,720,500    

                                                                                

21    Economic development fund...........................        16,804,800    

                                                                                

22    Michigan transportation fund........................         3,000,000    

                                                                                

23    State aeronautics fund..............................         5,000,000    

                                                                                

24    State trunkline fund................................        55,246,800    

                                                                                

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

                                                                                

26      Sec. 103.  INTERDEPARTMENT AND STATUTORY CONTRACTS                          

                                                                                

27    MTF grant to department of environmental quality.... $         884,800    


    Senate Bill No. 265 as amended May 8, 2003                                  

1     MTF grant to department of state for collection of                        

                                                                                

2       revenue and fees..................................        69,856,000    

                                                                                

3     MTF grant to department of state for commemorative                        

                                                                                

4       and speciality plates.............................         4,069,300    

                                                                                

5     MTF grant to department of treasury.................         6,700,000    

                                                                                

6     MTF grant to legislative auditor general............           181,100    

                                                                                

7     STF grant to department of attorney general.........         2,566,200    

                                                                                

8     STF grant to department of civil service............         2,000,000    

                                                                                

9     STF grant to department of history, arts, and                             

                                                                                

10      libraries.........................................           128,100    

                                                                                

11    <<                                                                   >>   

                                                                                

12    STF grant to department of state police.............         6,853,300    

                                                                                

13    <<                                                                   >>   

                                                                                

14    STF grant to legislative auditor general............           371,100    

                                                                                

15    SAF grant to department of attorney general.........           125,400    

                                                                                

16    SAF grant to department of civil service............            50,000    

                                                                                

17    SAF grant to department of history, arts, and                             

                                                                                

18      libraries.........................................             3,500    

                                                                                

19    SAF grant to department of management and budget....            39,400    

                                                                                

20    SAF grant to department of treasury.................            62,600    

                                                                                

21    SAF grant to legislative auditor general............            16,600    

                                                                                

22    CTF grant to attorney general.......................           131,500    

                                                                                

23    CTF grant to department of civil service............            90,000    

                                                                                

24    CTF grant to department of history, arts, and                             

                                                                                

25      libraries.........................................             5,900    

                                                                                

26    CTF grant to department of management and budget....            65,800    

                                                                                

27    CTF grant to department of treasury.................             5,300    


    Senate Bill No. 265 as amended May 8, 2003                                  

1     CTF grant to legislative auditor general...........           47,400      

                                                                                

2     GROSS APPROPRIATION................................. $  <<94,253,300>>    

                                                                                

3         Appropriated from:                                                    

                                                                                

4       Special revenue funds:                                                  

                                                                                

5     Comprehensive transportation fund...................          345,900     

                                                                                

6     Michigan transportation fund........................       81,691,200     

                                                                                

7     State aeronautics fund..............................          297,500     

                                                                                

8     State trunkline fund................................     <<11,918,700>>   

                                                                                

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

                                                                                

10      Sec. 104.  EXECUTIVE DIRECTION                                              

                                                                                

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

                                                                                

12      Full-time equated classified positions.........31.0                     

                                                                                

13    Unclassified salaries............................... $        371,000     

                                                                                

14    Director............................................          124,000     

                                                                                

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

                                                                                

16    Commission audit--31.0 FTE positions................        2,800,000     

                                                                                

17    GROSS APPROPRIATION................................. $      4,921,400     

                                                                                

18        Appropriated from:                                                    

                                                                                

19      Special revenue funds:                                                  

                                                                                

20    State trunkline fund................................        3,295,000     

                                                                                

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

                                                                                

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

                                                                                

23      Sec. 105.  ADMINISTRATIVE SERVICES                                          

                                                                                

24      Full-time equated classified positions.........67.0                     

                                                                                

25    Administration--28.0 FTE positions.................. $      2,950,000     

                                                                                

26    Property management.................................        6,921,500     

                                                                                

27    Human resources--30.0 FTE positions.................        2,425,000     


                                                                                

1     Economic development administration--9.0 FTE                              

                                                                                

2       positions.........................................           759,500    

                                                                                

3     Worker's compensation...............................         3,136,000    

                                                                                

4     GROSS APPROPRIATION................................. $      16,192,000    

                                                                                

5         Appropriated from:                                                    

                                                                                

6       Special revenue funds:                                                  

                                                                                

7     Comprehensive transportation fund...................         1,382,900    

                                                                                

8     Economic development fund...........................           500,700    

                                                                                

9     Michigan transportation fund........................            81,500    

                                                                                

10    State aeronautics fund..............................           630,400    

                                                                                

11    State trunkline fund................................        13,596,500    

                                                                                

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

                                                                                

13      Sec. 106.  INFORMATION TECHNOLOGY                                           

                                                                                

14    Information technology services and projects........ $      26,135,800    

                                                                                

15    GROSS APPROPRIATION................................. $      26,135,800    

                                                                                

16        Appropriated from:                                                    

                                                                                

17      Federal revenues:                                                       

                                                                                

18    DOT-FHWA, highway research, planning, and                                 

                                                                                

19      construction......................................           555,100    

                                                                                

20      Special revenue funds:                                                  

                                                                                

21    Blue Water Bridge fund..............................            43,900    

                                                                                

22    Comprehensive transportation fund...................           240,900    

                                                                                

23    Economic development fund...........................            37,100    

                                                                                

24    Michigan transportation fund........................            35,200    

                                                                                

25    State aeronautics fund..............................           134,500    

                                                                                

26    State trunkline fund................................        25,089,100    

                                                                                

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


                                                                                

1       Sec. 107.  BUREAU OF FINANCE AND ADMINISTRATION                             

                                                                                

2       Full-time equated classified positions........238.0                     

                                                                                

3     Administration--238.0 FTE positions................. $      19,900,000    

                                                                                

4     GROSS APPROPRIATION................................. $      19,900,000    

                                                                                

5         Appropriated from:                                                    

                                                                                

6       Special revenue funds:                                                  

                                                                                

7     Michigan transportation fund........................         1,127,500    

                                                                                

8     State trunkline fund................................        18,772,500    

                                                                                

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

                                                                                

10      Sec. 108.  BUREAU OF TRANSPORTATION PLANNING                                

                                                                                

11      Full-time equated classified positions........166.0                     

                                                                                

12    Administration--166.0 FTE positions................. $      23,000,000    

                                                                                

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

                                                                                

14    GROSS APPROPRIATION................................. $      23,488,800    

                                                                                

15        Appropriated from:                                                    

                                                                                

16      Federal revenues:                                                       

                                                                                

17    DOT-FHWA, highway research, planning, and                                 

                                                                                

18      construction......................................        16,000,000    

                                                                                

19      Special revenue funds:                                                  

                                                                                

20    State aeronautics fund..............................           195,700    

                                                                                

21    Comprehensive transportation fund...................         1,033,300    

                                                                                

22    Michigan transportation fund........................         5,233,800    

                                                                                

23    State trunkline fund................................         1,026,000    

                                                                                

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

                                                                                

25      Sec. 109.  BUREAU OF HIGHWAYS                                               

                                                                                

26      Full-time equated classified positions......1,635.4                     

                                                                                

27    Engineering operations--924.4 FTE positions......... $      39,757,100    


    Senate Bill No. 265 as amended May 8, 2003                                  

1     Maintenance operations--77.0 FTE positions..........        6,928,300     

                                                                                

2     Program services--634.0 FTE positions...............       29,998,000     

                                                                                

3     GROSS APPROPRIATION................................. $     76,683,400     

                                                                                

4         Appropriated from:                                                    

                                                                                

5       Federal revenues:                                                       

                                                                                

6     DOT-FHWA, highway research, planning, and                                 

                                                                                

7       construction......................................        5,000,000     

                                                                                

8       Special revenue funds:                                                  

                                                                                

9     Michigan transportation fund........................        3,901,700     

                                                                                

10    State trunkline fund................................       67,781,700     

                                                                                

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

                                                                                

12      Sec. 110.  HIGHWAY MAINTENANCE                                              

                                                                                

13      Full-time equated classified positions........692.6                     

                                                                                

14    State trunkline operations--692.6 FTE positions..... $     98,681,500     

                                                                                

15    Contract operations.................................      135,347,100     

                                                                                

16    GROSS APPROPRIATION................................. $    234,028,600     

                                                                                

17        Appropriated from:                                                    

                                                                                

18      Special revenue funds:                                                  

                                                                                

19    State trunkline fund................................      234,028,600     

                                                                                

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

                                                                                

21      Sec. 111.  ROAD AND BRIDGE PROGRAMS                                         

                                                                                

22    State trunkline federal aid and road and bridge                           

                                                                                

23      construction...................................... $  <<959,903,900>>   

                                                                                

24    Local federal aid and road and bridge construction..      226,500,000     

                                                                                

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

                                                                                

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

                                                                                

27    Critical bridge fund................................        5,750,000     


    Senate Bill No. 265 as amended May 8, 2003                                  

1     County road commissions.............................      631,804,300     

                                                                                

2     Cities and villages.................................      352,259,200     

                                                                                

3     GROSS APPROPRIATION................................. $<<2,212,217,400>>   

                                                                                

4         Appropriated from:                                                    

                                                                                

5       Federal revenues:                                                       

                                                                                

6     DOT-FHWA, highway research, planning, and                                 

                                                                                

7       construction......................................      864,000,000     

                                                                                

8       Special revenue funds:                                                  

                                                                                

9     Local funds.........................................        5,000,000     

                                                                                

10    Blue Water Bridge fund..............................        3,000,000     

                                                                                

11    Michigan transportation fund........................    1,025,063,500     

                                                                                

12    State trunkline fund................................    <<315,153,900>>   

                                                                                

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

                                                                                

14      Sec. 112.  BLUE WATER BRIDGE                                                

                                                                                

15      Full-time equated classified positions.........33.0                     

                                                                                

16    Blue Water Bridge operations--33.0 FTE positions.... $     10,265,500     

                                                                                

17    GROSS APPROPRIATION................................. $     10,265,500     

                                                                                

18        Appropriated from:                                                    

                                                                                

19      Special revenue funds:                                                  

                                                                                

20    Blue Water Bridge fund..............................       10,265,500     

                                                                                

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

                                                                                

22      Sec. 113.  TRANSPORTATION ECONOMIC DEVELOPMENT                              

                                                                                

23  FUND                                                                        

                                                                                

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

                                                                                

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

                                                                                

26    Target industries/economic redevelopment............       17,966,200     

                                                                                

27    Urban county congestion.............................        7,233,100     


                                                                                

1     Rural county primary................................         7,233,100    

                                                                                

2     GROSS APPROPRIATION................................. $      39,932,400    

                                                                                

3         Appropriated from:                                                    

                                                                                

4       Special revenue funds:                                                  

                                                                                

5     Economic development fund...........................        39,932,400    

                                                                                

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

                                                                                

7       Sec. 114.  BUREAU OF AERONAUTICS                                            

                                                                                

8       Full-time equated classified positions.........53.0                     

                                                                                

9     Administration--53.0 FTE positions.................. $       5,918,900    

                                                                                

10    Air service program.................................           600,000    

                                                                                

11    GROSS APPROPRIATION................................. $       6,518,900    

                                                                                

12        Appropriated from:                                                    

                                                                                

13      Special revenue funds:                                                  

                                                                                

14    State aeronautics fund..............................         6,518,900    

                                                                                

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

                                                                                

16      Sec. 115.  BUREAU OF URBAN AND PUBLIC                                       

                                                                                

17  TRANSPORTATION                                                              

                                                                                

18      Full-time equated classified positions.........82.0                     

                                                                                

19    Administration--82.0 FTE positions.................. $       6,650,000    

                                                                                

20    GROSS APPROPRIATION................................. $       6,650,000    

                                                                                

21        Appropriated from:                                                    

                                                                                

22      Special revenue funds:                                                  

                                                                                

23    Comprehensive transportation fund...................         4,952,600    

                                                                                

24    Michigan transportation fund........................         1,697,400    

                                                                                

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

                                                                                

26      Sec. 116.  BUS TRANSIT DIVISION:  STATUTORY                                 

                                                                                

27  OPERATING                                                                   


                                                                                

1     Local bus operating................................. $     150,000,000    

                                                                                

2     Nonurban operating/capital..........................        10,900,000    

                                                                                

3     GROSS APPROPRIATION................................. $     160,900,000    

                                                                                

4         Appropriated from:                                                    

                                                                                

5       Federal revenues:                                                       

                                                                                

6     DOT, federal transit act............................        10,700,000    

                                                                                

7       Special revenue funds:                                                  

                                                                                

8     Local funds.........................................           200,000    

                                                                                

9     Comprehensive transportation fund...................       150,000,000    

                                                                                

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

                                                                                

11      Sec. 117.  INTERCITY PASSENGER AND FREIGHT                                  

                                                                                

12    Freight property management......................... $       1,500,000    

                                                                                

13    Detroit/Wayne County port authority.................           500,000    

                                                                                

14    Intercity bus equipment.............................         3,000,000    

                                                                                

15    Rail passenger service..............................        11,300,000    

                                                                                

16    Freight preservation and development................         5,303,500    

                                                                                

17    Rail infrastructure loan program....................           100,000    

                                                                                

18    Intercity bus service development...................         2,950,000    

                                                                                

19    Marine passenger services...........................           400,000    

                                                                                

20    Terminal development................................         2,884,800    

                                                                                

21    GROSS APPROPRIATION................................. $      27,938,300    

                                                                                

22        Appropriated from:                                                    

                                                                                

23      Federal revenues:                                                       

                                                                                

24    DOT, federal transit act............................         1,600,000    

                                                                                

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

                                                                                

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

                                                                                

27      Special revenue funds:                                                  


                                                                                

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

                                                                                

2     Rail preservation fund..............................         2,000,000    

                                                                                

3     Intercity bus equipment fund........................         1,000,000    

                                                                                

4     Comprehensive transportation fund...................        20,188,300    

                                                                                

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

                                                                                

6       Sec. 118.  PUBLIC TRANSPORTATION DEVELOPMENT                                

                                                                                

7     Specialized services................................ $       3,600,000    

                                                                                

8     Municipal credit program............................         2,000,000    

                                                                                

9     Bus capital.........................................        49,544,900    

                                                                                

10    Bus property management.............................            50,000    

                                                                                

11    Service development and new technology..............         1,350,000    

                                                                                

12    Audit settlements...................................           150,000    

                                                                                

13    Work first initiative...............................         4,000,000    

                                                                                

14    GROSS APPROPRIATION................................. $      60,694,900    

                                                                                

15        Appropriated from:                                                    

                                                                                

16      Federal revenues:                                                       

                                                                                

17    DOT, federal transit act............................        40,300,000    

                                                                                

18      Special revenue funds:                                                  

                                                                                

19    Local funds.........................................           550,000    

                                                                                

20    Comprehensive transportation fund...................        19,844,900    

                                                                                

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

                                                                                

                                                                                

                                                                                

                                                                                

22                                    PART 2                                    

                                                                                

23                     PROVISIONS CONCERNING APPROPRIATIONS                     

                                                                                

24  GENERAL SECTIONS                                                            

                                                                                

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

                                                                                


                                                                                

1   constitution of 1963, total state spending from state resources under       

                                                                                

2   part 1 for fiscal year 2003-2004 is $2,184,941,300.00 and state             

                                                                                

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

                                                                                

4   for fiscal year 2003-2004 is $1,224,196,500.00.  The itemized               

                                                                                

5   statement below identifies appropriations from which spending to units      

                                                                                

6   of local government will occur:                                             

                                                                                

7   DEPARTMENT OF TRANSPORTATION                                                

                                                                                

8     Local grant program................................. $      33,000,000    

                                                                                

9     Grants to cities and villages.......................       352,259,200    

                                                                                

10    Grants to county road commissions...................       631,804,300    

                                                                                

11    Critical bridge fund................................         5,750,000    

                                                                                

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

                                                                                

13    Local bus operating.................................       150,000,000    

                                                                                

14    Bus capital.........................................        10,194,900    

                                                                                

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

                                                                                

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

                                                                                

17    Target industries/economic redevelopment............        12,233,100    

                                                                                

18    Urban county congestion.............................         7,233,100    

                                                                                

19    Rural county primary................................         7,233,100    

                                                                                

20    Detroit/Wayne County port authority.................           500,000    

                                                                                

21    Municipal credit program............................         2,000,000    

                                                                                

22    Specialized services................................         3,600,000    

                                                                                

23    Total payments to local units of government......... $   1,224,196,500    

                                                                                

24      Sec. 202.  The appropriations authorized under this act are                 

                                                                                

25  subject to the management and budget act, 1984 PA 431, MCL 18.1101 to       

                                                                                

26  18.1594.                                                                    

                                                                                

27      Sec. 203.  As used in this act:                                             


                                                                                

1       (a)  "CTF" means comprehensive transportation fund.                         

                                                                                

2       (b)  "Department" means the department of transportation.                   

                                                                                

3       (c)  "DOT" means the United States department of transportation.            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

7   administration, high-speed ground transportation.                           

                                                                                

8       (g)  "EDF" means economic development fund.                                 

                                                                                

9       (h)  "FTE" means full-time equated.                                         

                                                                                

10      (i)  "MTF" means Michigan transportation fund.                              

                                                                                

11      (j)  "RIF" means recreation improvement fund.                               

                                                                                

12      (k)  "SAF" means state aeronautics fund.                                    

                                                                                

13      (l)  "STF" means state trunkline fund.                                      

                                                                                

14      Sec. 204.  The department of civil service shall bill departments           

                                                                                

15  and agencies at the end of the first fiscal quarter for the 1% charge       

                                                                                

16  authorized by section 5 of article XI of the state constitution of          

                                                                                

17  1963.  Payments shall be made for the total amount of the billing by        

                                                                                

18  the end of the second fiscal quarter.                                       

                                                                                

19      Sec. 205.  (1) A hiring freeze is imposed on the state classified           

                                                                                

20  civil service.  State departments and agencies are prohibited from          

                                                                                

21  hiring any new state classified civil service employees and prohibited      

                                                                                

22  from filling any vacant state classified civil service positions.           

                                                                                

23  This hiring freeze does not apply to internal transfers of classified       

                                                                                

24  employees from 1 position to another within a department.                   

                                                                                

25      (2) The state budget director shall grant exceptions to this                

                                                                                

26  hiring freeze when the state budget director believes that the hiring       

                                                                                

27  freeze will result in rendering a state department or agency unable to      


                                                                                

1   deliver basic services, causes loss of revenue to the state, would          

                                                                                

2   result in the inability of the state to receive federal funds, or           

                                                                                

3   would necessitate additional expenditures that exceed any savings from      

                                                                                

4   maintaining a vacancy.  The state budget director shall report by the       

                                                                                

5   thirtieth of each month to the chairpersons of the senate and house of      

                                                                                

6   representatives standing committees on appropriations the number of         

                                                                                

7   exceptions to the hiring freeze approved during the previous month and      

                                                                                

8   the reasons to justify the exception.                                       

                                                                                

9       Sec. 207.  At least 90 days before beginning any effort to                  

                                                                                

10  privatize, the department shall submit a complete project plan to the       

                                                                                

11  appropriate senate and house of representatives appropriations              

                                                                                

12  subcommittees and the senate and house fiscal agencies.  The plan           

                                                                                

13  shall include the criteria under which the privatization initiative         

                                                                                

14  will be evaluated.  The evaluation shall be completed and submitted to      

                                                                                

15  the appropriate senate and house of representatives appropriations          

                                                                                

16  subcommittees and the senate and house fiscal agencies within 30            

                                                                                

17  months.  As used in this section, "privatize" or "privatization" means      

                                                                                

18  the transfer of state highway maintenance functions or activities           

                                                                                

19  currently performed by department forces, or by boards of county road       

                                                                                

20  commissioners, county boards of commissioners, or local units of            

                                                                                

21  government under contract with the department, to private                   

                                                                                

22  contractors.                                                                

                                                                                

23      Sec. 208.  Unless otherwise specified, the department shall use             

                                                                                

24  the Internet to fulfill the reporting requirements of this act.  This       

                                                                                

25  may include transmission of reports via electronic mail to the              

                                                                                

26  recipients identified for each reporting requirement or it may include      

                                                                                

27  placement of reports on an Internet or Intranet site.  Quarterly, the       


                                                                                

1   department shall provide to the senate and house appropriations             

                                                                                

2   subcommittees, the state budget office, and the senate and house            

                                                                                

3   fiscal agencies an electronic and paper copy listing of the reports         

                                                                                

4   submitted during the most recent 3-month period along with the              

                                                                                

5   Internet or Intranet site of each report, if any.                           

                                                                                

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

                                                                                

7   purchase of foreign goods or services, or both, if competitively            

                                                                                

8   priced and of comparable quality American goods or services, or both,       

                                                                                

9   are available.  The department shall give priority to the purchase of       

                                                                                

10  Michigan goods and services.                                                

                                                                                

11      Sec. 210.  The director of each department receiving                        

                                                                                

12  appropriations in part 1 shall take all reasonable steps to ensure          

                                                                                

13  businesses in deprived and depressed communities compete for and            

                                                                                

14  perform contracts to provide services or supplies, or both.  Each           

                                                                                

15  director shall strongly encourage firms with which the department           

                                                                                

16  contracts to subcontract with certified businesses in depressed and         

                                                                                

17  deprived communities for services, supplies, or both.                       

                                                                                

18      Sec. 211.  The departments and state agencies receiving                     

                                                                                

19  appropriations under this act shall receive and retain copies of all        

                                                                                

20  reports funded from appropriations in part 1.  These departments and        

                                                                                

21  state agencies shall follow federal and state guidelines for                

                                                                                

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

                                                                                

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

                                                                                

24  technology, the department shall pay user fees to the department of         

                                                                                

25  information technology for technology-related services and projects.        

                                                                                

26  The user fees shall be subject to provisions of an interagency              

                                                                                

27  agreement between the department and the department of information          


                                                                                

1   technology.                                                                 

                                                                                

2       Sec. 260.  Amounts appropriated in part 1 for information                   

                                                                                

3   technology may be designated as work projects and carried forward to        

                                                                                

4   support technology projects under the direction of the department of        

                                                                                

5   information technology.  Funds designated in this manner are not            

                                                                                

6   available for expenditure until approved as work projects under             

                                                                                

7   section 451a of the management and budget act, 1984 PA 431,                 

                                                                                

8   MCL 18.1451a.                                                               

                                                                                

                                                                                

                                                                                

9   DEPARTMENTAL SECTIONS                                                       

                                                                                

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

                                                                                

11  collect fees sufficient to cover the costs to issue the permits that        

                                                                                

12  the department is authorized by law to issue upon request, and for          

                                                                                

13  which fees are not otherwise stipulated by law.  All permit fees are        

                                                                                

14  nonrefundable application fees and shall be credited to the state           

                                                                                

15  trunkline fund to recover the direct and indirect costs of receiving,       

                                                                                

16  reviewing, and processing the requests.                                     

                                                                                

17      (2) A bridge authority shall hold 3 public hearings on a change in          

                                                                                

18  any toll charged by the authority at least 30 days before the toll          

                                                                                

19  change will become effective.  Two of the hearings shall be held            

                                                                                

20  within 5 miles of the bridge over which the bridge authority has            

                                                                                

21  jurisdiction.  One hearing shall be held in Lansing.                        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  county, that is included in whole or in part within the legislator's        

                                                                                

26  legislative district.                                                       


                                                                                

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

                                                                                

2   the department requires a contractor to submit financial or                 

                                                                                

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

                                                                                

4   documentation shall be kept confidential and shall not be disclosed         

                                                                                

5   other than to a department representative without the contractor's          

                                                                                

6   written consent.  The department may disclose the bid documentation if      

                                                                                

7   necessary to address or defend a claim by a contractor.                     

                                                                                

8       Sec. 305.  The department may permit space on public passenger              

                                                                                

9   transportation properties to be occupied by public or private tenants       

                                                                                

10  on a competitive market rate basis.  The department may require that        

                                                                                

11  revenue from the tenants be placed in an account to be used to pay the      

                                                                                

12  costs to maintain and improve the property.                                 

                                                                                

13      Sec. 306.  The auditor general shall conduct an audit of charges            

                                                                                

14  to the Michigan transportation fund by state departments for the 2          

                                                                                

15  preceding fiscal years, with the first audit covering the fiscal years      

                                                                                

16  ending September 30, 2003 and September 30, 2004.  The auditor general      

                                                                                

17  shall prepare a detailed report, with recommendations and conclusions,      

                                                                                

18  including a list of services charged to the Michigan transportation         

                                                                                

19  fund, the appropriateness of those charges, and the cost allocation         

                                                                                

20  methodologies used in determining the level of funding, and any             

                                                                                

21  unreimbursed costs, and provide the report, upon request, to any            

                                                                                

22  member of the senate and house of representatives, the senate and           

                                                                                

23  house fiscal agencies, and the state budget director 6 months after         

                                                                                

24  publication of the state of Michigan comprehensive annual financial         

                                                                                

25  report.                                                                     

                                                                                

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

                                                                                

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


                                                                                

1   senate fiscal agencies its rolling 5-year plan listing by county or by      

                                                                                

2   county road commission all highway construction projects for the            

                                                                                

3   fiscal year and all expected projects for the ensuing fiscal years.         

                                                                                

4       Sec. 308.  The department and local road agencies that receive              

                                                                                

5   appropriations under this act shall pursue compliance with contract         

                                                                                

6   specifications for construction and maintenance of state highways and       

                                                                                

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

                                                                                

8   until it complies with contract requirements.  Contractors with             

                                                                                

9   unsatisfactory performance ratings shall be restricted from future          

                                                                                

10  bidding through the prequalification process established by the             

                                                                                

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

                                                                                

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

                                                                                

13  representatives and senate appropriations subcommittees on                  

                                                                                

14  transportation on their respective activities under this section.           

                                                                                

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

                                                                                

16  administrative costs and provide the maximum funding possible for           

                                                                                

17  construction projects.                                                      

                                                                                

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

                                                                                

19  of the agenda and approved minutes of monthly transportation                

                                                                                

20  commission meetings to the members of the house and senate                  

                                                                                

21  appropriations subcommittees on transportation, the house and senate        

                                                                                

22  fiscal agencies, and the state budget director.                             

                                                                                

23      Sec. 311.  The department shall not use funds appropriated under            

                                                                                

24  part 1 on behalf of a local governmental unit to pay the amount             

                                                                                

25  required for that local governmental unit to participate in the             

                                                                                

26  federal advance construction program.                                       

                                                                                

27      Sec. 312.  At the close of the fiscal year ending September 30,             


                                                                                

1   2004, any unencumbered and unexpended balance in the state trunkline        

                                                                                

2   fund shall remain in the state trunkline fund and shall carry forward       

                                                                                

3   and is appropriated for federal aid road and bridge programs for            

                                                                                

4   projects contained in the annual state transportation program.              

                                                                                

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

                                                                                

6   may increase a state infrastructure bank program and grant or loan          

                                                                                

7   funds in accordance with regulations of the state infrastructure bank       

                                                                                

8   program of the United States department of transportation.  The state       

                                                                                

9   infrastructure bank is to be administered by the department for the         

                                                                                

10  purpose of providing a revolving, self-sustaining resource for              

                                                                                

11  financing transportation infrastructure projects.                           

                                                                                

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

                                                                                

13  received by the state as federal grants, repayment of state                 

                                                                                

14  infrastructure bank loans, or other reimbursement or revenue received       

                                                                                

15  by the state as a result of projects funded by the program and              

                                                                                

16  interest earned on that money shall be deposited in the revolving           

                                                                                

17  state infrastructure bank fund and shall be available for                   

                                                                                

18  transportation infrastructure projects.  At the close of the fiscal         

                                                                                

19  year, any funds remaining in the state infrastructure bank fund shall       

                                                                                

20  remain in the fund and be carried forward into the succeeding fiscal        

                                                                                

21  year.                                                                       

                                                                                

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

                                                                                

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

                                                                                

24  auditor for the prior fiscal year.  This report shall include a             

                                                                                

25  listing of each audit or investigation performed by the internal            

                                                                                

26  auditor pursuant to sections 486(4) and 487 of the management and           

                                                                                

27  budget act, 1984 PA 431, MCL 18.1486 and 18.1487.  The report shall         


                                                                                

1   identify the proportion of time spent on each of the statutory              

                                                                                

2   responsibilities listed in sections 485(4), 486(4), and 487 of the          

                                                                                

3   management and budget act, 1984 PA 431, MCL 18.1485, 18.1486, and           

                                                                                

4   18.1487, and the time spent on all other activities performed in the        

                                                                                

5   internal audit function.  The report shall be due biennially beginning      

                                                                                

6   on May 1, 2001 and shall be submitted to the governor, auditor              

                                                                                

7   general, the senate and house of representatives appropriations             

                                                                                

8   committees, the senate and house fiscal agencies, and the director.         

                                                                                

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

                                                                                

10  from the state trunkline fund shall be used for enhanced construction       

                                                                                

11  zone traffic law enforcement and the "give 'em a brake" campaign.  The      

                                                                                

12  funding shall be used to reimburse law enforcement agencies for costs       

                                                                                

13  associated with construction zone traffic enforcement.  The funding         

                                                                                

14  shall be provided based on approved memoranda of understanding between      

                                                                                

15  the department and participating law enforcement agencies.                  

                                                                                

16      Sec. 352.  (1) Each county road commission, or in the case of a             

                                                                                

17  charter county with a population of 2,000,000 or more with an elected       

                                                                                

18  county executive that does not have a board of county road                  

                                                                                

19  commissioners, the county executive, shall prepare, and present to the      

                                                                                

20  department, a map illustrating the all-season county road network           

                                                                                

21  under its jurisdiction.  The county road commissions shall record this      

                                                                                

22  information on an official county highway map provided to them by the       

                                                                                

23  department.  The department shall provide each county road commission       

                                                                                

24  with 3 official copies of their county road highway map on or before        

                                                                                

25  October 1, 2004.                                                            

                                                                                

26      (2) After compiling this information for all Michigan counties,             

                                                                                

27  the department shall prepare a report on the current all-season road        


    Senate Bill No. 265 as amended May 8, 2003                                  

1   network within the state.  This report shall illustrate the current         

                                                                                

2   all-season road network under state and county control, identify            

                                                                                

3   contiguity gaps in this network, and suggest ways to improve                

                                                                                

4   connectivity on the current all-season network.  This report shall be       

                                                                                

5   presented to the house and senate appropriations subcommittees on           

                                                                                

6   transportation, the house and senate transportation policy committees,      

                                                                                

7   and the house and senate fiscal agencies on or before October 1,            

                                                                                

8   2005.                                                                       

                                                                                

9       Sec. 353.  The department shall review its contractor payment               

                                                                                

10  process and use its best efforts to ensure that all prime contractors       

                                                                                

11  are paid promptly.  The department shall work to ensure that prime          

                                                                                

12  contractors are in compliance with special provision 109.10 regarding       

                                                                                

13  the prompt payment of subcontractors.                                       

                                                                                

14      Sec. 358.  It is the intent of the legislature that the                     

                                                                                

15  department director's salary shall be reduced when a report deadline        

                                                                                

16  established under this act is not met.  The appropriation in part 1         

                                                                                

17  for the director's salary shall be reduced in direct proportion to the      

                                                                                

18  number of days that a report required under this act is late.               

                                                                                

19      Sec. 359.  No funds appropriated in part 1 to the bureau of                 

                                                                                

20  multi-modal transportation services or the bureau of planning shall be      

                                                                                

21  used for personal services contracts.                                       

                                                                                

22      Sec. 360.  No state funds appropriated in part 1 shall be                   

                                                                                

23  expended by the bureau of planning for any positions that engage in         

                                                                                

24  planning activities associated with local public transit agencies.  <<This does not prohibit the bureau of multi-modal transportation services from engaging in planning activities.>>                                                          

25      Sec. 361.  (1) The bureau of multi-modal transportation services            

                                                                                

26  shall prepare an annual management plan that defines and justifies its      

                                                                                

27  program functions, its role in comprehensive transportation programs,       


                                                                                

1   and the administrative costs of all full-time equated classified            

                                                                                

2   positions in the bureau.  On or before January 1, 2004, this plan           

                                                                                

3   shall be submitted to the state transportation commission, the senate       

                                                                                

4   and house appropriations subcommittees on transportation, and the           

                                                                                

5   senate and house standing committees on transportation.                     

                                                                                

6       (2) Beginning October 1, 2003, the bureau of multi-modal                    

                                                                                

7   transportation services shall conduct its functions only under formal       

                                                                                

8   program policies adopted by the state transportation commission and as      

                                                                                

9   required by state and federal law.                                          

                                                                                

10      (3) Beginning October 1, 2003, the bureau of multi-modal                    

                                                                                

11  transportation services shall not use any funds appropriated in part 1      

                                                                                

12  to fund any full-time equated classified positions not authorized           

                                                                                

13  under this act.                                                             

                                                                                

                                                                                

                                                                                

14  FEDERAL                                                                     

                                                                                

15      Sec. 401.  When the department receives authorization from the              

                                                                                

16  federal government to commit transportation funds pursuant to federal       

                                                                                

17  appropriations, it shall present to the senate and house of                 

                                                                                

18  representatives appropriations transportation subcommittees and the         

                                                                                

19  senate and house fiscal agencies, the federal amounts and categories        

                                                                                

20  authorized and the department's recommendation for distribution of          

                                                                                

21  these funds.  If a recommendation or recommendations are not                

                                                                                

22  disapproved within 30 business days by either the senate or house of        

                                                                                

23  representatives appropriations transportation subcommittee, then the        

                                                                                

24  recommendation or recommendations shall be considered as approved.  If      

                                                                                

25  either the senate or house of representatives appropriations                

                                                                                

26  transportation subcommittee disapproves the proposed distribution,          


                                                                                

1   then the senate and house of representatives appropriations                 

                                                                                

2   transportation subcommittees and the department shall hold a joint          

                                                                                

3   meeting on the issue to arrive at a final distribution.  If no              

                                                                                

4   agreement is reached between the parties, the department's                  

                                                                                

5   distribution shall stand.                                                   

                                                                                

6       Sec. 402.  (1) Twenty-three to twenty-seven percent of the                  

                                                                                

7   DOT-FHWA, highway research, planning, and construction federal funds        

                                                                                

8   appropriated in part 1 shall be allocated to programs administered by       

                                                                                

9   local jurisdictions after deduction of the following:                       

                                                                                

10      (a) Funds that are specifically allocated at the federal level to           

                                                                                

11  the state or local jurisdictions.                                           

                                                                                

12      (b) Funds allocated by the department to the state and to local             

                                                                                

13  jurisdictions through a competitive process.                                

                                                                                

14      (2) Federal aid excluded from the calculation of funding                    

                                                                                

15  allocated to programs administered by local jurisdictions in                

                                                                                

16  subsection (1) includes, but is not limited to, congestion mitigation       

                                                                                

17  and air quality funds, federal bridge funds, transportation                 

                                                                                

18  enhancement funds, funds distributed at the discretion of the United        

                                                                                

19  States secretary of transportation, and congressionally designated          

                                                                                

20  funds.                                                                      

                                                                                

21      (3) The funds shall be distributed to eligible local agencies for           

                                                                                

22  transportation purposes in a manner consistent with state and federal       

                                                                                

23  law.                                                                        

                                                                                

24      (4) Federal aid to highways allocated to local jurisdictions in             

                                                                                

25  subsection (1) shall be distributed in a manner that produces a 25%         

                                                                                

26  average allocation of applicable funds to programs for local                

                                                                                

27  jurisdictions in each fiscal year through the fiscal year ending            


                                                                                

1   September 30, 2005.  The average allocation of applicable federal aid       

                                                                                

2   to highway funds to programs for local jurisdictions shall be the           

                                                                                

3   average of the amount distributed to local jurisdictions under              

                                                                                

4   subsection (1) and similarly calculated distributions in each               

                                                                                

5   succeeding fiscal year.                                                     

                                                                                

6       (5) The allocation percentage described in subsection (1) shall be          

                                                                                

7   adjusted to reflect any voluntary agreements made by the department         

                                                                                

8   with local jurisdictions regarding the transfer of federal aid              

                                                                                

9   eligible roadways or the state buyout of local federal aid.                 

                                                                                

10      (6) The department shall not borrow against the critical bridge             

                                                                                

11  fund for the first 9 months of the fiscal year.                             

                                                                                

12      (7) The federal funds appropriated in part 1 for local federal aid          

                                                                                

13  and road and bridge construction, to eligible local road agencies, may      

                                                                                

14  be transferred through a voluntary buyout agreement made between            

                                                                                

15  eligible local road agencies.                                               

                                                                                

16      Sec. 404.  It is the intent of the legislature that $3,750,000.00           

                                                                                

17  in federal high priority project funds designated in the                    

                                                                                

18  transportation equity act for the 21st century, Public Law 105-178,         

                                                                                

19  112 Stat. 107, to improve I-94 in Kalamazoo County be expended by the       

                                                                                

20  department for preliminary engineering and design work related to           

                                                                                

21  rehabilitation and capacity improvements to I-94 between US-131 and         

                                                                                

22  Sprinkle Road in Kalamazoo County.                                          

                                                                                

                                                                                

                                                                                

23  MICHIGAN TRANSPORTATION FUND                                                

                                                                                

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

                                                                                

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

                                                                                

26  consumer and industry services or the department of state police is         


                                                                                

1   deposited in the Michigan transportation fund.                              

                                                                                

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

                                                                                

3   make investigations of the disposition of all state funds received by       

                                                                                

4   county road commissions or county boards of commissioners, as               

                                                                                

5   applicable, and cities and villages for transportation purposes to          

                                                                                

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

                                                                                

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

                                                                                

8   commissioners, as applicable, and cities and villages shall make            

                                                                                

9   available to the department of treasury the pertinent records for the       

                                                                                

10  audit.                                                                      

                                                                                

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

                                                                                

12  development and critical bridge programs shall not lapse at the end of      

                                                                                

13  the fiscal year but shall carry forward each fiscal year for the            

                                                                                

14  purposes for which appropriated in accordance with 1987 PA 231,             

                                                                                

15  MCL 247.901 to 247.913, and section 11b of 1951 PA 51, MCL 247.661b.        

                                                                                

16      (2) Interest earned in the department of transportation economic            

                                                                                

17  development fund and critical bridge fund shall remain in the               

                                                                                

18  respective funds and shall be allocated to the respective programs          

                                                                                

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

                                                                                

20      (3) The department of transportation economic development fund and          

                                                                                

21  critical bridge fund may receive and expend federal, local, or private      

                                                                                

22  funds or restricted source funds such as interest earnings for              

                                                                                

23  projects that are consistent with the programmatic mission of the           

                                                                                

24  respective funds in addition to funds appropriated in part 1.               

                                                                                

25      (4) None of the funds statutorily dedicated to the transportation           

                                                                                

26  economic development fund and critical bridge fund shall be diverted        

                                                                                

27  to other projects.                                                          


                                                                                

1       Sec. 504.  (1) Funds from the Michigan transportation fund (MTF)            

                                                                                

2   shall be distributed to the comprehensive transportation fund (CTF),        

                                                                                

3   the economic development fund (EDF), the recreational improvement fund      

                                                                                

4   (RIF), and the state trunkline fund (STF), in accordance with this act      

                                                                                

5   and part 711 of the natural resources and environmental protection          

                                                                                

6   act, 1994 PA 451, MCL 324.71101 to 324.71108, and may only be used as       

                                                                                

7   specified in this act, 1951 PA 51, MCL 247.651 to 247.675, and part         

                                                                                

8   711 of the natural resources and environmental protection act, 1994         

                                                                                

9   PA 451, MCL 324.71101 to 324.71108.                                         

                                                                                

10      (2) The amounts appropriated and transferred to various state               

                                                                                

11  agencies from part 1 shall be expended from the transportation funds        

                                                                                

12  pursuant to annual contracts between the department and state agencies      

                                                                                

13  providing tax and fee collection and other services applicable to           

                                                                                

14  transportation funds.  The contracts shall be executed prior to the         

                                                                                

15  transfer of these funds.  The contracts shall provide, but are not          

                                                                                

16  limited to, the following data applicable to each state agency:             

                                                                                

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

                                                                                

18      (b) Description of services financed with transportation funds.             

                                                                                

19      (c) Detailed cost allocation methods that are appropriate to the            

                                                                                

20  type of services being provided and the activities financed with            

                                                                                

21  transportation funds.                                                       

                                                                                

22      (3) Two months after publication of the state of Michigan                   

                                                                                

23  comprehensive annual financial report, each state agency receiving an       

                                                                                

24  interdepartment and statutory contract from the department shall            

                                                                                

25  submit a written report to the department, the state budget director,       

                                                                                

26  and the house and senate fiscal agencies stating by spending                

                                                                                

27  authorization account the amount of estimated funds contracted with         


                                                                                

1   the department, the amount of funds expended, and the amount of funds       

                                                                                

2   returned to the transportation funds.  A copy of the report shall be        

                                                                                

3   submitted to the auditor general and the report shall be subject to         

                                                                                

4   audit by the auditor general.                                               

                                                                                

5       Sec. 505.  (1) Of the amount appropriated in part 1 from the                

                                                                                

6   Michigan transportation fund to the department of state, $186,600.00        

                                                                                

7   represents the additional cost of issuing specialized license plates        

                                                                                

8   for veterans and national guard members, as included in sections 803i,      

                                                                                

9   803j, 803k, and 803l of the Michigan vehicle code, 1949 PA 300,             

                                                                                

10  MCL 257.803i, 257.803j, 257.803k, and 257.803l, and $187,600.00             

                                                                                

11  represents the additional cost of issuing generic license plates for        

                                                                                

12  nonprofit fraternal or public service organizations, as included in         

                                                                                

13  section 803m of the Michigan vehicle code, 1949 PA 300, MCL 257.803m.       

                                                                                

14      (2) In addition, commemorative and specialty license plate fee              

                                                                                

15  revenue collected by the department of state and deposited into the         

                                                                                

16  Michigan transportation fund is authorized for expenditure by the           

                                                                                

17  department of state up to the amount of revenue collected, but not to       

                                                                                

18  exceed $2,147,300.00 for commemorative plates and $1,922,000.00 for         

                                                                                

19  specialty plates.  These amounts are appropriated to the department of      

                                                                                

20  state in part 1 to administer the commemorative and specialty license       

                                                                                

21  plate programs pursuant to section 225 of the Michigan vehicle code,        

                                                                                

22  1949 PA 300, MCL 257.225.                                                   

                                                                                

23      (3) The department of state shall prepare an annual report on the           

                                                                                

24  number of, and the additional costs associated with, these license          

                                                                                

25  plate programs to the department, the state budget director, the house      

                                                                                

26  and senate fiscal agencies, and the chairpersons of the house of            

                                                                                

27  representatives and senate appropriations subcommittees on                  


                                                                                

1   transportation.                                                             

                                                                                

2       (4) Any unspent funds based on these annual reports shall lapse to          

                                                                                

3   the Michigan transportation fund and be distributed in accordance with      

                                                                                

4   1951 PA 51, MCL 247.651 to 247.675.                                         

                                                                                

5       Sec. 506.  From the funds appropriated in part 1 for county road            

                                                                                

6   commissions, no county road commission shall pay any fee to the state       

                                                                                

7   department of natural resources to cut down and/or remove any tree or       

                                                                                

8   vegetation on any county right-of-way property.                             

                                                                                

9       Sec. 507.  It is the intent of the legislature to reduce the                

                                                                                

10  level of funding for grants from state-restricted transportation funds      

                                                                                

11  to other state departments.  The department, with input from other          

                                                                                

12  state departments that receive grants from state-restricted                 

                                                                                

13  transportation funds, shall recommend alternative funding methods for       

                                                                                

14  services provided by other state departments, other than                    

                                                                                

15  interdepartmental grants from state-restricted transportation funds.        

                                                                                

16  The department shall report its recommendations to the house and            

                                                                                

17  senate appropriations subcommittees on transportation and to the house      

                                                                                

18  and senate fiscal agencies by February 1, 2004.                             

                                                                                

19  STATE TRUNKLINE FUND                                                        

                                                                                

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

                                                                                

21  industry and engineering consulting community to develop performance        

                                                                                

22  and road construction warranties for construction contracts.  The           

                                                                                

23  development of warranties shall include warranties on materials,            

                                                                                

24  workmanship, performance criteria, and design/build projects.  The          

                                                                                

25  department will report by September 30, 2004 to the house of                

                                                                                

26  representatives and senate appropriations subcommittees on                  

                                                                                

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


                                                                                

1   fiscal agencies on the status of efforts to develop performance and         

                                                                                

2   road construction warranties.                                               

                                                                                

3       Sec. 602.  If the department uses manufactured pipe for road                

                                                                                

4   construction drainage, the department shall require that pipe used          

                                                                                

5   under certain load-bearing conditions beneath the roadway meet the          

                                                                                

6   standards established by the American society for testing and               

                                                                                

7   materials (ASTM) or American association of state highway and               

                                                                                

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

                                                                                

9   mandrel test for manufactured pipe 60 days after installation and           

                                                                                

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

                                                                                

11  representatives and senate appropriations subcommittees on                  

                                                                                

12  transportation and house and senate fiscal agencies.                        

                                                                                

13      Sec. 603.  It is the intent of the legislature that the                     

                                                                                

14  department shall use traffic congestion as 1 of the criteria in             

                                                                                

15  determining the priorities for designating which roads shall be             

                                                                                

16  remediated in its 5-year road plan, which must be submitted on or           

                                                                                

17  before February 1, 2004.  Criteria for evaluating traffic congestion        

                                                                                

18  shall include, but not be limited to, coordination with local, county,      

                                                                                

19  and regional planning, improvement in traffic operations, improvement       

                                                                                

20  in physical roadway conditions, accident reduction, and coordination        

                                                                                

21  with area public transportation planning.                                   

                                                                                

22      Sec. 610.  It is the intent of the legislature that the                     

                                                                                

23  department have as a priority the removal of dead deer and other large      

                                                                                

24  animal remains from the traveled portion and shoulder of state              

                                                                                

25  highways.  The department, and counties that perform state highway          

                                                                                

26  maintenance under contract, shall remove animal remains, wherever           

                                                                                

27  practicable, away from the traveled portion and shoulder of state           


                                                                                

1   highways.                                                                   

                                                                                

2       Sec. 611.  From the appropriations in part 1, the department                

                                                                                

3   shall use the highest quality pavement marking materials for all state      

                                                                                

4   trunkline projects.  The department shall coordinate with material          

                                                                                

5   suppliers, equipment manufacturers, and application contractors to          

                                                                                

6   ensure improved durability, retro-reflectivity, and wet reflective          

                                                                                

7   capability.                                                                 

                                                                                

8       Sec. 612.  The department shall establish guidelines governing              

                                                                                

9   incentives and disincentives provided under contracts for state             

                                                                                

10  trunkline projects.  The guidelines shall include specific financial        

                                                                                

11  information concerning incentives and disincentives.  On or before          

                                                                                

12  January 1, 2004, the department shall prepare a report for the              

                                                                                

13  immediately preceding fiscal year regarding contract incentives and         

                                                                                

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

                                                                                

15  contractors that received contract incentives and/or disincentives,         

                                                                                

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

                                                                                

17  days that each project was completed either ahead or past the               

                                                                                

18  contracted completion date.  This report shall be provided to the           

                                                                                

19  senate and house appropriations subcommittees on transportation, the        

                                                                                

20  senate and house standing committees on transportation, and the senate      

                                                                                

21  and house fiscal agencies.                                                  

                                                                                

22      Sec. 613.  From the funds appropriated in part 1, the department            

                                                                                

23  shall address the structural problems with the M-25 bridge in Hume          

                                                                                

24  Township resulting from the Schram drain.                                   

                                                                                

25      Sec. 614.  From the funds appropriated in part 1, the department            

                                                                                

26  shall conduct a feasibility study regarding the construction of a full      

                                                                                

27  interchange between exits 212 and 215 on I-75 in Ogemaw County at           


                                                                                

1   M-30.  The study shall be completed and the findings communicated to        

                                                                                

2   the senate and house of representatives appropriations subcommittees        

                                                                                

3   on transportation and the senate and house fiscal agencies by February      

                                                                                

4   1, 2004.                                                                    

                                                                                

                                                                                

                                                                                

5   COMPREHENSIVE TRANSPORTATION FUND                                           

                                                                                

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

                                                                                

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

                                                                                

8   in the comprehensive transportation fund under section 10b of 1951          

                                                                                

9   PA 51, MCL 247.660b, but is money that is deposited in an intercity         

                                                                                

10  bus equipment fund for appropriation for the purchase and repair of         

                                                                                

11  intercity bus equipment.  Proceeds received by the state from the sale      

                                                                                

12  of intercity bus equipment are deposited in an intercity bus equipment      

                                                                                

13  fund for appropriation for the purchase and repair of intercity bus         

                                                                                

14  equipment.  Security deposits from the lease of state-owned intercity       

                                                                                

15  bus equipment not returned to the lessee of the equipment under terms       

                                                                                

16  of the lease agreement are deposited in an intercity bus equipment          

                                                                                

17  fund for appropriation for the repair of intercity bus equipment.           

                                                                                

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

                                                                                

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

                                                                                

20  of the sale of property or equipment used or projected to be used for       

                                                                                

21  rail or water freight projects shall be deposited in the fund created       

                                                                                

22  by section 17 of the state transportation preservation act of 1976,         

                                                                                

23  1976 PA 295, MCL 474.67.                                                    

                                                                                

24      Sec. 703.  After receiving notification from a railroad company             

                                                                                

25  pursuant to section 8 of the state transportation preservation act of       

                                                                                

26  1976, 1976 PA 295, MCL 474.58, the department shall immediately notify      


                                                                                

1   the house of representatives and senate appropriations subcommittees        

                                                                                

2   on transportation and the state budget office that the railroad             

                                                                                

3   company has filed with the appropriate governmental agencies for            

                                                                                

4   abandonment of a line.                                                      

                                                                                

5       Sec. 705.  From the funds appropriated in part 1, $100,000.00 is            

                                                                                

6   allocated for a rail infrastructure loan program.  The program shall        

                                                                                

7   provide noninterest-bearing loans for rail infrastructure                   

                                                                                

8   improvements.  The department shall evaluate loan applications              

                                                                                

9   according to the relative merit of the project in conjunction with          

                                                                                

10  program goals.  The transportation commission shall approve the             

                                                                                

11  loans.  The loans shall fund not more than 90% of the rail portion of       

                                                                                

12  project costs, and the loan repayment period shall not exceed 10            

                                                                                

13  years.  Local governments, railroads, and current or potential users        

                                                                                

14  of freight railroad services are eligible applicants.  At the end of        

                                                                                

15  the fiscal year, unexpended funds shall remain in the rail                  

                                                                                

16  infrastructure loan program and shall be available to be allocated for      

                                                                                

17  the purposes of the program in the succeeding fiscal year.  Money that      

                                                                                

18  is received by this state as repayment for rail infrastructure loans        

                                                                                

19  made pursuant to this program shall remain within the rail                  

                                                                                

20  infrastructure loan program and shall be allocated for the purposes of      

                                                                                

21  the program.  The state's total contribution to the rail                    

                                                                                

22  infrastructure loan program shall not exceed $15,000,000.00.                

                                                                                

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

                                                                                

24  complete operations assessment and a financial disclosure statement.        

                                                                                

25  The operations assessment shall include operational goals for the next      

                                                                                

26  5 years and recommendations to improve land acquisition and                 

                                                                                

27  development efficiency.  The report shall be completed and submitted        


                                                                                

1   to the house of representatives and senate appropriations                   

                                                                                

2   subcommittees on transportation, the state budget office, and the           

                                                                                

3   house and senate fiscal agencies by February 15, 2004.                      

                                                                                

4       Sec. 707.  For the fiscal year ending September 30, 2004, each              

                                                                                

5   eligible authority and each eligible governmental agency which              

                                                                                

6   provides public transportation services in urbanized areas with a           

                                                                                

7   Michigan population of less than or equal to 100,000 and nonurbanized       

                                                                                

8   areas under section 5311 of title 49 of the United States Code,             

                                                                                

9   49 U.S.C. 5311, shall receive a grant of up to 60% of its eligible          

                                                                                

10  operating expenses.  Each eligible authority and each eligible              

                                                                                

11  government agency which provides public transportation services in          

                                                                                

12  urbanized areas with a Michigan population of greater than 100,000          

                                                                                

13  under section 5307 of title 49 of the United States Code,                   

                                                                                

14  49 U.S.C. 5307, shall receive a grant of up to 50% of its eligible          

                                                                                

15  operating expenses.                                                         

                                                                                

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

                                                                                

17  state-owned or state-leased buses to private intercity bus carriers,        

                                                                                

18  the department shall charge not less than $1,000.00 per bus per year        

                                                                                

19  for their use.                                                              

                                                                                

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

                                                                                

21  essential corridor in Michigan:                                             

                                                                                

22        Between St. Ignace and                                                

                                                                                

23          Escanaba                     US-2                                   

                                                                                

24        Between Escanaba and                                                  

                                                                                

25          Duluth                       US-2 through Ironwood to the           

                                                                                

26                                         state line                           

                                                                                

27        Between Calumet and                                                   


                                                                                

1           Escanaba                     US-41                                  

                                                                                

2         Between Escanaba and                                                  

                                                                                

3           Milwaukee                    US-41 through Menominee to the         

                                                                                

4                                          state line                           

                                                                                

5         Between St. Ignace and                                                

                                                                                

6           Sault Ste. Marie             I-75                                   

                                                                                

7         Between Detroit and                                                   

                                                                                

8           Chicago                      I-94 from Detroit to the state         

                                                                                

9                                          line                                 

                                                                                

10        Between Detroit and                                                   

                                                                                

11          Muskegon                     I-96                                   

                                                                                

12        Between Grand Rapids,                                                 

                                                                                

13          Holland, and Benton                                                 

                                                                                

14          Harbor                       I-196 to I-94                          

                                                                                

15        Between Muskegon and                                                  

                                                                                

16          Grand Rapids                 US-31, I-96                            

                                                                                

17        Between Detroit and Bay                                               

                                                                                

18          City                         I-75                                   

                                                                                

19        Between Bay City and                                                  

                                                                                

20          Mount Pleasant               US-10, M-20                            

                                                                                

21        Between Jackson and                                                   

                                                                                

22          Traverse City                US-127, US-27, I-75, Grayling,         

                                                                                

23                                         Gaylord, M-72 to Traverse City       

                                                                                

24        Between Jackson and                                                   

                                                                                

25          Indianapolis                 I-69, I-94 to the state line           

                                                                                

26                                         through Albion, Marshall, and        

                                                                                

27                                         Coldwater                            


                                                                                

1         Between Houghton Lake                                                 

                                                                                

2           and Cadillac                 M-55 and M-66                          

                                                                                

3         Between Detroit and                                                   

                                                                                

4           Toledo                       I-75 to the state line                 

                                                                                

5         Between the Indiana                                                   

                                                                                

6           state line and                                                      

                                                                                

7           Traverse City                US-31 and I-196                        

                                                                                

8         Between Detroit and Port                                              

                                                                                

9           Huron                        I-375 and I-94                         

                                                                                

10        Between Toledo and Bay                                                

                                                                                

11          City                         US-23, I-75, and I-675, I-75           

                                                                                

12        Between Bay City and                                                  

                                                                                

13          Chicago                      I-75, Flint, I-69, I-94, Battle        

                                                                                

14                                         Creek, I-94 to the state line        

                                                                                

15        Between Flint and                                                     

                                                                                

16          Lansing                      I-69, M-21, Owosso, M-52, I-69         

                                                                                

17        Between Bay City and                                                  

                                                                                

18          St. Ignace                   I-75, US-23                            

                                                                                

19        Between Grand Rapids and                                              

                                                                                

20          St. Ignace                   US-131, Cadillac, M-115, Mesick,       

                                                                                

21                                         M-37 to Traverse City, US-31,        

                                                                                

22                                         Acme, M-72, Kalkaska, US-131,        

                                                                                

23                                         Boyne Falls, M-75, Walloon           

                                                                                

24                                         Lake, US-131, Petoskey, US-31,       

                                                                                

25                                         I-75, St. Ignace                     

                                                                                

26        Between Kalamazoo and                                                 

                                                                                

27          Grand Rapids                 US-131                                 


                                                                                

1       (2) Any changes to the essential corridor list in subsection (1)            

                                                                                

2   shall be approved by the house and senate appropriations subcommittees      

                                                                                

3   on transportation.                                                          

                                                                                

4       (3) No entity shall receive operating assistance for a scheduled            

                                                                                

5   regular route service which is competing with another private or            

                                                                                

6   public carrier over the same route.                                         

                                                                                

7       Sec. 710.  Whenever possible, the department shall work with the            

                                                                                

8   local transit agencies to avoid establishing new routes that duplicate      

                                                                                

9   existing routes served by intercity carriers when providing services        

                                                                                

10  under regional transportation service programs.  It is preferable that      

                                                                                

11  private intercity carriers be provided an opportunity to bid by local       

                                                                                

12  public transit agencies on services funded through the regional             

                                                                                

13  transportation service program.                                             

                                                                                

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

                                                                                

15  comprehensive transportation fund for rail passenger service, the           

                                                                                

16  department shall negotiate with a rail carrier to provide rail service      

                                                                                

17  between Grand Rapids and Chicago and between Port Huron and Chicago on      

                                                                                

18  a 7-day basis, consistent with the other provisions of this section.        

                                                                                

19      (2) The department shall work with the rail carrier, local                  

                                                                                

20  communities, and the federal government to increase marketing efforts       

                                                                                

21  to promote awareness of rail passenger service, to increase ridership,      

                                                                                

22  to reduce operating subsidies in conjunction with the federal phaseout      

                                                                                

23  of operating subsidies, to maximize the revenue of the rail passenger       

                                                                                

24  lines in Michigan, and to improve on-time performance.  The department      

                                                                                

25  shall submit a report to both the house and senate appropriations           

                                                                                

26  committees and the house and senate fiscal agencies by January 1,           

                                                                                

27  2004, that provides a 5-year history on services, ridership, and            


                                                                                

1   subsidies.                                                                  

                                                                                

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

                                                                                

3   Chicago and Port Huron and Chicago is dependent on the department's         

                                                                                

4   ability to provide a plan and a contract for services that increase         

                                                                                

5   ridership and revenue, reduce operating costs, and improve on-time          

                                                                                

6   performance.  The department shall include a section in the report          

                                                                                

7   required in subsection (2) detailing efforts to reduce the dependence       

                                                                                

8   on state operating subsidies and projected operating expenses for the       

                                                                                

9   next 2 years, and recommending service alternatives, for the Grand          

                                                                                

10  Rapids to Chicago service and the Port Huron to Chicago service.            

                                                                                

11      (4) Any state subsidy shall only provide for the direct operating           

                                                                                

12  costs in Michigan and shall not exceed $7,100,000.00 for the service        

                                                                                

13  between Port Huron and Chicago and Grand Rapids and Chicago.                

                                                                                

14      (5) The rail carrier shall, as a condition to receiving a state             

                                                                                

15  operating subsidy, establish a system to monitor, collect, and resolve      

                                                                                

16  customer complaints and shall make the information available to the         

                                                                                

17  department, the house and senate appropriations subcommittees on            

                                                                                

18  transportation, and to the house and senate fiscal agencies.                

                                                                                

19      (6) If the chosen rail carrier is Amtrak, the department shall              

                                                                                

20  require Amtrak to provide information to the department to identify         

                                                                                

21  direct and indirect operating costs prior to receiving any state            

                                                                                

22  funding.  Any state subsidy shall only provide for the direct               

                                                                                

23  operating costs in Michigan.                                                

                                                                                

24      (7) No state subsidy shall be provided from the funds appropriated          

                                                                                

25  in part 1 if the chosen rail carrier is Amtrak and Amtrak discontinued      

                                                                                

26  service on any portion of the service between Port Huron and Chicago        

                                                                                

27  or Grand Rapids and Chicago during the preceding fiscal year.               


                                                                                

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

                                                                                

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

                                                                                

3   provided throughout Michigan.  The department shall continue to work        

                                                                                

4   with local units of government to address the unmet transit needs in        

                                                                                

5   Michigan.                                                                   

                                                                                

6       Sec. 715.  (1) On or before January 27, 2004, the department,               

                                                                                

7   together with the house and senate fiscal agencies and the department       

                                                                                

8   of management and budget, shall estimate the unreserved and                 

                                                                                

9   unencumbered closing balance of the comprehensive transportation fund       

                                                                                

10  (CTF) for the fiscal year ending September 30, 2003.  The estimate          

                                                                                

11  shall consider lapsed appropriations from the CTF and revised               

                                                                                

12  estimates of state restricted transportation revenue.                       

                                                                                

13      (2) On or before February 3, 2004, the department shall request a           

                                                                                

14  legislative transfer in accordance with section 393 of the management       

                                                                                

15  and budget act, 1984 PA 431, MCL 18.1393, to appropriate any estimated      

                                                                                

16  unreserved and unencumbered CTF fund balance in excess of                   

                                                                                

17  $1,000,000.00.  The appropriations included in the transfer request         

                                                                                

18  shall be in accordance with the statutory requirements of 1951 PA 51,       

                                                                                

19  MCL 247.651 to 247.675, with priority given to local bus operating          

                                                                                

20  grants.  At the same time the department makes its transfer request,        

                                                                                

21  the department shall submit copies of the transfer request to the           

                                                                                

22  house of representatives and senate appropriations subcommittees on         

                                                                                

23  transportation and the house and senate fiscal agencies.                    

                                                                                

24      Sec. 719.  The department may provide advances to local road                

                                                                                

25  authorities from the rail grade crossing account pursuant to section        

                                                                                

26  11(1)(g) of 1951 PA 51, MCL 247.661, for the construction of grade          

                                                                                

27  separations.  Money that is received by the state as a repayment of         


                                                                                

1   the advance, including interest on the advance, shall be returned to        

                                                                                

2   the rail grade crossing account and be available for the local grade        

                                                                                

3   crossing program for advances for the construction of grade                 

                                                                                

4   separations pursuant to section 11(1)(g) of 1951 PA 51, MCL 247.661.        

                                                                                

5       Sec. 721.  For federal transit administration bus acquisition               

                                                                                

6   capital grants matched with CTF funds appropriated in part 1, transit       

                                                                                

7   agencies shall have 4 years from the federal approval date to carry         

                                                                                

8   out their projects.  Contract line items unobligated 4 years after the      

                                                                                

9   federal approval date may be matched with CTF funds only up to 15% in       

                                                                                

10  the fifth and subsequent years.  "Unobligated" means any line item in       

                                                                                

11  the contract that is not committed to a third party or purchase             

                                                                                

12  order.  A waiver shall be granted by the department for an additional       

                                                                                

13  year with documented justification from the transit agency accompanied      

                                                                                

14  by a resolution from the board or authority seeking a waiver.  If a         

                                                                                

15  transit agency does not carry out a line item activity in a specific        

                                                                                

16  authorization and the transit agency requests funds in a new                

                                                                                

17  authorization for that same activity, the line item shall be matched        

                                                                                

18  at up to 15%.  This section applies only to bus acquisition capital         

                                                                                

19  grants.  Lapsed funds under this section shall remain in the CTF.           

                                                                                

20      Sec. 722.  From the funds appropriated in part 1 for the work               

                                                                                

21  first initiative from the CTF, sufficient funds shall be used as a          

                                                                                

22  match for job access reverse commute grants for local transit               

                                                                                

23  agencies.                                                                   

                                                                                

24      Sec. 726.  At the close of the fiscal year ending September 30,             

                                                                                

25  2004, $16,000,000.00 from the unreserved and unencumbered closing           

                                                                                

26  balance of the comprehensive transportation fund shall be transferred       

                                                                                

27  to the general fund.  The money transferred to the general fund under       


    Senate Bill No. 265 as amended May 8, 2003                                  

1   this section shall represent a portion of the sales tax revenue that        

                                                                                

2   is deposited in the comprehensive transportation fund pursuant to           

                                                                                

3   section 25 of the general sales tax act, 1933 PA 167, MCL 205.75.  It       

                                                                                

4   is the intent of the legislature that this funding will be used to          

                                                                                

5   partially offset reductions to the Michigan transportation fund grant       

                                                                                

6   provided to the department of state under this act.                         

                                                                                

7       Sec. 727.  From the appropriation in part 1 for local bus                   

                                                                                

8   operating grants, the regional transit coordinating council created         

                                                                                

9   under section 4a of the metropolitan transportation authorities act of      

                                                                                

10  1967, 1967 PA 204, MCL 124.404a, shall receive no more than the             

                                                                                

11  minimum grant allowed under section 10e of 1951 PA 51, MCL 247.660e.        

                                                                                

12     <<Sec. 728.  (1)  From the funds appropriated in part 1 from the         

                                                                                

13    comprehensive transportation fund, notwithstanding section 359, the department may provide funding for research and development, including, but not limited to, preliminary engineering, of alternative rail passenger services along alternative active or inactive rights of way.

     (2) For the purposes of this section, the department may enter into an agreement with a public entity or private company.  The public entity or private company may provide information to the department.>>                            

14      Sec. 729.  From the appropriations in part 1, no funds shall be             

                                                                                

15  expended for the start-up costs associated with the Detroit area            

                                                                                

16  regional transportation authority established under House Bill              

                                                                                

17  No. 4072 and Senate Bill No. 100 of the 92nd Legislature.                   

                                                                                

18      Sec. 730.  The state funds appropriated in part 1 for intercity             

                                                                                

19  bus service development may be used to address increased security of        

                                                                                

20  intercity bus carriers.                                                     

                                                                                

21      Sec. 731.  Funds appropriated in part 1 shall not be used for any           

                                                                                

22  expansion of an intermodal rail freight facility in southwest Detroit,      

                                                                                

23  outside of existing railroad property, prior to the completion of an        

                                                                                

24  environmental impact statement.                                             

                                                                                

                                                                                

                                                                                

25  AERONAUTICS FUND                                                            

                                                                                

26      Sec. 801.  At the close of the fiscal year ending September 30,             


                                                                                

1   2004, any unobligated and unexpended balance in the state aeronautics       

                                                                                

2   fund created in the aeronautics code of the state of Michigan, 1945         

                                                                                

3   PA 327, MCL 259.1 to 259.208, shall lapse to the state aeronautics          

                                                                                

4   fund and be appropriated by the legislature in the immediately              

                                                                                

5   succeeding fiscal year.                                                     

                                                                                

6       Sec. 805.  State aeronautics funds appropriated in part 1 for               

                                                                                

7   airport safety and protection plan debt service are transferred to the      

                                                                                

8   comprehensive transportation fund and are appropriated for the purpose      

                                                                                

9   of reimbursing comprehensive transportation fund debt service               

                                                                                

10  obligations for the airport safety and protection plan program.