HB-4961, As Passed House, May 26, 2010

SUBSTITUTE FOR

HOUSE BILL NO. 4961

A bill to amend 1964 PA 286, entitled

"An act to provide for the organization, powers, and duties of the

state transportation commission and the state transportation

department; to provide for the appointment, powers, and duties of

the state transportation director; to abolish the office of state

highway commissioner and the commissioner's advisory board and to

transfer their powers and duties; to provide for penalties and

remedies; and to repeal certain acts and parts of acts,"

by amending the title and sections 1, 6a, 7, 7a, and 10 (MCL

247.801, 247.806a, 247.807, 247.807a, and 247.810), the title as

amended by 1984 PA 398 and section 7a as amended by 1981 PA 122,

and by adding sections 7b, 7c, 7d, 7e, 7f, 7g, 7h, and 7i.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

An act to provide for the organization, powers, and duties of

the state transportation commission and the state transportation

department; to provide for the appointment, powers, and duties of

the state transportation director; to abolish the office of state

highway commissioner and the commissioner's advisory board and to

transfer their powers and duties; to provide for public

transportation facilities; to provide for the creation of certain

authorities; to authorize public-private agreements relating to

researching, planning, studying, designing, developing, financing,

acquiring, constructing, charging user fees, operating, or

maintaining a public transportation facility, or other arrangements

for the creation and operation of public transportation facilities

that may be financed by user fees, charges, and other revenue; to

provide for the sale of bonds; to provide for certain powers of

certain state departments; to provide for penalties and remedies;

and to repeal ~~certain~~ acts and parts of acts.

Sec. 1. As used in this act:

(a) ~~(1)~~ "Commission" means the state transportation

commission.

(b) "Concessionaire" means a private entity that has entered

into a public-private agreement under section 7b.

transportation.

(d) ~~(3)~~ "Department" means the department of transportation.

(e) "Instrumentality of government" means a public entity

created or empowered to carry out functions commonly carried out by

units of government, public agencies, or public authorities.

Instrumentality of government additionally means the government of

Canada or a public agency or public authority created by the

government of Canada or another state of the United States or a

corporation without share capital created and empowered under the

Canadian international bridges and tunnels act to carry out

functions commonly carried out by the government of Canada.

(f) "Private entity" means any natural person, corporation,

general partnership, limited liability company, limited

partnership, joint venture, business trust, public benefit

corporation, nonprofit entity, or other nongovernmental business

entity.

(g) "Public-private agreement" means an agreement between a

private entity and the department or between a private entity, the

department, and 1 or more other instrumentalities of government

that relates to researching, planning, studying, designing,

developing, financing, acquiring, constructing, charging user fees,

operating, or maintaining a public transportation facility, or any

combination of those activities. Public-private agreement includes

an agreement between the department and 1 or more instrumentalities

of government if the agreement is related to a project that has or

will have an agreement between the department or an instrumentality

of government and a private entity.

(h) "Public transportation facility" means any new or existing

domestic or international highway, lane, road, bridge, tunnel,

overpass, ramp, interchange, ferry, airport, vehicle parking

facility, vehicle transportation facility, port facility, locks

facility, rail facility, intermodal or other public transit

facility, or any other equipment, rolling stock, site, or facility

used in the transportation of persons, goods, substances, vehicles,

information, or matter of any kind, and any building, structure,

parking area, appurtenance, or other property necessary or

desirable for the facility.

Sec. 6a. The director may do the following:

(a) Organize the department and its work, supervise the work

of the employees and agents of the department, create, merge, and

abolish organizational divisions within the department, and

transfer or merge functions among those divisions in the interest

of economy and efficiency.

(b) Employ personnel necessary to carry out the duties of the

director and the responsibilities of the department subject to

contractual obligations and laws governing state employment.

~~the approval of the commission,~~ any powers vested in the director

or delegated to the director by the commission except the power to

enter into a public-private agreement under section 7b.

(d) Establish a program of current and long-range planning for

the transportation systems under the department's jurisdiction and

public transportation facilities of the department.

(e) Direct the preparation of budget requests, expenditures,

programs and periodical allotments.

(f) Purchase materials, supplies, and equipment. ~~as necessary~~

~~and proper to carry out the duties of the department as provided by~~

~~law governing state purchasing.~~

(g) Purchase services in accordance with applicable civil

service rules.

(h) Acquire interests in real and personal property, including

by condemnation.

(i) ~~(g)~~ Dispose of obsolete equipment, surplus supplies and

material that cannot be used by the department as provided by law

governing the disposal.

(j) ~~(h)~~ Do anything necessary and proper to comply fully with

the provisions of present or future federal aid acts.

(k) Enter into public-private agreements under section 7b

subject to the approval of the commission.

(l) ~~(i)~~ Do anything necessary and proper to carry out the

duties imposed upon the department by the constitution and other

duties as may be imposed by law.

Sec. 7. (1) The commission's powers and duties shall include:

(a) The ~~awarding~~ approval for award by the department of ~~all~~

contracts for the construction, improvement, and maintenance of the

highways and public transportation facilities ~~under its~~

~~jurisdiction~~ of the department, as provided by ~~law~~ resolution of

the commission.

(b) The establishment of transportation policies for the

guidance and direction of the director.

private agreements.

(2) The commission may do the following:

(a) Delegate to any member of the commission, the director, or

any subordinate, any powers, other than the power to establish

policy, vested in the commission as it considers necessary and

proper, ~~; and permit the director to delegate any powers delegated~~

~~to him or her by the commission~~ except for the power to approve

public-private agreements under this section.

(b) ~~Acquire,~~ Authorize the department to acquire, own, and

hold interests in real and personal property in the name of ~~the~~

this state or the ~~commission~~ department and to sell, lease or

otherwise dispose of, or encumber, any interests in the same in

connection with, and in furtherance of, its duties and the purposes

of this act, subject to resolutions of the commission.

imposed upon it by the constitution and such other duties as may be

imposed by law.

(3) The commission shall conduct a public hearing at least

once every 5 years to receive public comment and input with regard

to then existing public transportation facilities operated under a

public-private agreement.

Sec. 7a. (1) As used in this section:

(a) "Completion" means the date when the construction,

improvement, or maintenance of a bridge, highway, or other

transportation facility is accepted in accordance with the contract

documents, so that the bridge, highway, or other transportation

facility may be used for its intended purpose.

(b) "Construction contract" means an agreement between a

contractor and the department for the construction, improvement, or

maintenance of a bridge, highway, or other transportation facility.

Construction contract does not include a public-private agreement.

~~individual; sole proprietorship; partnership; corporation; joint~~

~~venture; or other legal~~ a person or entity, other than ~~the~~ this

state, or an agency or department of the state, who is a party to a

construction contract.

~~(d) "Project" means the specific section 9 of the highway~~

~~construction to be performed under the construction contract.~~

(2) A construction contract may provide for partial payments

to be made periodically to a construction contractor. The

department may establish specifications regarding the retention of

a portion of the total amount earned under the construction

contract.

(3) At the request of the construction contractor and upon the

approval of the department, the portion retained pursuant to the

specifications established under subsection (2) shall be placed in

an escrow account pursuant to this section.

(4) An escrow agent may be selected by the construction

contractor. For purposes of this section, an escrow agent shall be

a state or national bank, a state or federally chartered savings

and loan association, or a state or federally chartered credit

union whose principal place of business is located in this state.

(5) An escrow agreement shall be entered into between the

contracting parties and the escrow agent. The escrow agreement

shall contain all of the following terms:

(a) That the escrow agent shall promptly invest all of the

escrowed funds.

(b) That the escrow agent shall hold the escrowed funds until

receipt of notice from the department. Upon receipt of a notice of

release from the department, the escrow agent shall promptly remit

the designated portion of escrowed funds to the construction

contractor involved in the contract. Upon receipt of a notice of

overpayment or default of the contract, the escrow agent shall

promptly remit the designated portion of escrowed funds to the

department.

and money as a result of the deposit of the amount until released

from responsibility pursuant to the escrow agreement.

(d) That the construction contractor shall pay all expenses

regarding the deposit, investment, and administration of the

retained amount and all other charges made by the escrow agent.

(e) Any other provision agreed to by the contracting parties

and the escrow agent necessary or proper for purposes of this

section.

Sec. 7b. (1) The department may enter into public-private

agreements as provided in this act. Public-private agreements shall

include terms designed to protect the public interest and ensure

accountability of a concessionaire to the department or a public

entity created under Michigan law for a public transportation

facility in this state, whichever is applicable. A public-private

agreement may contain terms and conditions that the department may

determine or negotiate to facilitate the researching, planning,

studying, designing, developing, financing, acquiring,

constructing, charging user fees, governing, operating, or

maintaining of a public transportation facility in the public

interest. A public transportation facility shall be publicly owned

and shall be dedicated to the public use as a public transportation

facility as provided in this act.

(2) A public-private agreement shall provide for the terms of

the use and operation of a public transportation facility by a

concessionaire for a period the department determines is necessary

for the development and financing of a public transportation

facility and the economic feasibility of the public-private

agreement. The public-private agreement may include a lease,

license, right of entry, or other instrument for the public

transportation facility as the department determines is in the best

interest of the public. The agreement may provide for an initial

operating term not exceeding 50 years from the later of completion

of construction or commencement of collecting user fees if user

fees are collected unless a longer term is required for the

economic feasibility of the public-private agreement as determined

by the department and approved by the commission. The agreement

shall provide that the ownership of a public transportation

facility within this state shall be vested in the department or a

public entity created under Michigan law, and that title to the

public transportation facility shall not be encumbered. No

provision of a public-private agreement shall allow the public to

be deprived of the use and benefit of a public transportation

facility except as necessary to implement user fees or ancillary

charges authorized by this section, to regulate the level or

character of permissible uses of the public transportation

facility, to address issues of public safety or security, or to

maintain, repair, or improve the public transportation facility. A

public-private agreement shall provide for the termination of the

agreement. Nothing in a public-private agreement shall prohibit the

department from constructing, operating, and maintaining any

transportation project that is in the department's long-range plan

in effect on the date that proposals are submitted, or prohibit any

municipality, county, or other local agency from constructing,

operating, and maintaining any transportation project.

(3) A public-private agreement may provide for the charging

and collection of user fees and ancillary charges for the use of a

public transportation facility. Except as otherwise provided in

this subsection, once user fees are initially established, user

fees and ancillary charges shall not be increased by more than the

cumulative annual increases in the consumer price index, as

published by the United States bureau of labor statistics in the

United States department of labor, and designated in the public-

private agreement without written approval of the department. User

fees and ancillary charges that are intended by the department to

apply to lanes managed by the level of user fees to control or

manage traffic volume or flow may be increased by more than the

consumer price index, as published by the United States bureau of

labor statistics, and specified in the public-private agreement. If

a user fails to pay the user fee by prior arrangement, and separate

billing is required for payment, a reasonable administrative fee

may be charged. A user fee may be imposed on a highway only if

imposed for the use of highways constructed after the effective

date of the amendatory act that added this section, or the use of

highways with expanded capacity beyond the highway capacity in

House Bill No. 4961 (H-6) as amended May 26, 2010

place on the effective date of the amendatory act that added this

section. User fees and ancillary charges imposed for the use of a

public transportation facility in this state are not subject to

regulation by any other governmental agency. Nothing in this

section shall be construed to allow the conversion of any lanes

existing on the effective date of the amendatory act that added

this section into tolled or user-fee lanes except that the

department may determine which lane of an existing highway is

designated for imposition of user fees if capacity of that highway

is expanded.

(4) Compensation paid to the department in connection with a

public-private agreement including the department's portion of user

fees and ancillary charges imposed for use of a public

transportation facility shall be used for transportation purposes.

(5) In accordance with the terms of a public-private

agreement, the department or an instrumentality of government shall

oversee the activities of a concessionaire carrying out the terms

of a public-private agreement. A public-private agreement may

provide for the use of arbitration, mediation, or other alternative

dispute resolution mechanism for the resolution of disputes between

the department and a concessionaire.

(6) [This state, including, but not limited to,] The department[,

] does

not have any liability for the acts or omissions of the

concessionaire or other party to a public-private agreement.

(7) A public-private agreement may permit the conduct of

commercial activities at a public transportation facility if the

activities are related to the transportation purposes of the

facility and to the extent not restricted by applicable law.

(8) Except as otherwise provided in this act, a public-private

agreement for a public transportation facility shall impose on the

concessionaire the same requirements of law that are imposed in

contracts of the department when it contracts directly for the

construction or operation of a public transportation facility. A

public-private agreement shall establish the amounts for which the

concessionaire shall post payment and performance bonds or other

security as provided in this subsection. A public-private agreement

may authorize a concessionaire for a public transportation facility

to provide a letter of credit in lieu of a payment or performance

bond. If the department determines that bonds or letters of credit

are not reasonably available in sufficient amounts, the department

may accept another commercially reasonable form of security,

including parent corporation guarantees, to supplement available

payment bonds, performance bonds, or letters of credit. The

department shall require the posting of sufficient security to

fulfill the purposes of a payment and performance bond. In lieu of

posting by the concessionaire, or in supplementation of that

posting, the department may accept bonds, letters of credit, and

other security from entities other than the concessionaire so long

as the purposes of a payment and performance bond are fulfilled.

(9) The department may make and enter into all contracts and

agreements and take any other action necessary or incidental to the

performance of its duties and the execution of its powers under

this act and a public-private agreement.

(10) For public-private agreements that include an operations

House Bill No. 4961 (H-6) as amended May 26, 2010 (1 of 2)

phase, the public-private agreement shall require that the public

transportation facility revert from the concessionaire to the

department at the end of the term of the public-private agreement

in a condition specified by the department.

(11) The public-private agreement shall include provisions

that address the department’s rights to share in refinancing gains

received by the concessionaire under the public-private agreement.

(12) The public-private agreement shall include provisions

that specify the restrictions imposed on the ability of the

concessionaire to sell or transfer its interest in the public-

private agreement without the consent of the department.

(13) A public-private agreement shall not delegate the power

to condemn property to the concessionaire. All right of way

acquired through condemnation that is used for a public

transportation facility shall be and remain publicly owned during

the term of a public-private agreement.

(14) For any international bridge crossing that does not exist

as of the effective date of the amendatory act that added this

section, a public-private agreement [for any such international bridge

crossing] shall include risk allocation

provisions specifying the risk assumed by the concessionaire [and each

instrumentality of government that is party to the public-private agreement]

related to the public transportation facility, including the risk

relating to [construction] cost overruns and, as applicable, [toll]

revenue shortfalls. [Before approving and entering a public-private agreement for any international bridge that does not exist as of the effective date of the amendatory act that added this section, the department shall ensure these risk allocation provisions provide for the most economically beneficial way for this state to perform the project, while minimizing liability for construction cost overruns and toll revenue shortfalls for which this state could be held liable, and the department shall submit a report to the governor explaining how this mandate was fulfilled.]

Sec. 7c. Upon approval by the commission of a resolution, the

department may create public transportation authorities as separate

legal entities within the department that may exercise the powers

of the department in regard to public-private agreements under this

act, to the extent authorized by an agreement between the

department and the public transportation authority. A public

transportation authority is an instrumentality of government that

may sue and be sued and enter into contracts, including public-

private agreements, to the extent authorized by an agreement with

the department. The department is not liable for the acts or

omissions of a public transportation authority, except to the

extent expressly authorized in an agreement between a public

transportation authority and the department. Employees of a public

transportation authority are employees of this state, and the

authority shall comply with the rules and regulations of the civil

service commission. A public transportation authority is an agency

of the state entitled to governmental immunity under 1964 PA 170,

MCL 691.1401 to 691.1419. The department and a public

transportation authority shall comply with all applicable state and

federal laws and regulations, including, but not limited to,

applicable environmental laws and regulations.

Sec. 7d. (1) The department may solicit proposals or receive

unsolicited proposals for a public-private agreement and may charge

and use fees to offset the administrative costs of receiving and

evaluating proposals. Before receiving a proposal, the department

may agree to reimburse a private entity for designated costs

incurred in the preparation and presentation of a proposal in

return for the right to use any work product contained in the

proposal, including, but not limited to, the technologies, methods,

processes, and information contained in the material submitted in

connection with the proposal. The department has the sole

discretion whether, and to what extent, to consider an unsolicited

proposal. Before entering into any public-private agreement for a

public transportation facility proposed by an unsolicited proposal,

the department may amend the proposal and shall solicit competing

proposals and enter into any public-private agreement using the

criteria in subsection (5).

(2) In soliciting or selecting a private entity with which to

enter into a public-private agreement, the department shall utilize

1 or more of the following procurement approaches:

(a) Sealed bidding.

(b) Selection of proposals, with or without negotiations,

based on qualifications, development proposals, technical

proposals, financial proposals, best value, or any combination of

them.

determines to be appropriate or reasonable.

(3) The department shall select a private entity or entities

for participation in a public-private agreement using a competitive

selection process to the extent practicable.

(4) Before selecting a project, the department shall consider

all of the following factors:

(a) The ability of the public transportation facility to

improve safety or operations, reduce congestion, reduce travel

times, increase capacity, enhance environmental quality, promote

economic development, or any combination of these or similar

factors.

(b) Benefits to the public.

this state.

(5) The department shall consider all of the following factors

in evaluating and selecting a bid or proposal to enter into a

public-private agreement:

(a) The proposed cost of and financial plan for the public

transportation facility.

(b) The general reputation, qualifications, industry

experience, safety record, labor record, and financial capacity of

the private entity.

public transportation facility.

(d) To the extent permitted by federal law, the proposed plan

of the private entity to hire legal United States residents and

citizens for work relating to the public transportation facility in

this state.

(e) Any other criteria, including prequalification under rules

promulgated by the department or through compliance with 1933 PA

170, MCL 123.501 to 123.508, that the department considers

necessary or appropriate in the best interests of this state or the

people of this state.

(6) The department may select multiple private entities with

which to enter into public-private agreements for a public

transportation facility if it is determined by the department to be

in the public interest to do so.

(7) The department may promise to keep trade secrets or

proprietary commercial or financial information provided by a

private entity confidential only for purposes of seeking or

entering into a public private agreement. Upon receipt of a

sufficiently detailed request by a private entity, the department

shall provide a description of the information to which its promise

of confidentiality will extend. Submission of a solicited or

unsolicited proposal constitutes consent for the department to use

the information and ideas provided by a private entity for a

transportation facility or for purposes of seeking or entering into

a public-private agreement, including to solicit competing

proposals unless the department agrees otherwise in a writing

executed by the department before the submission.

(8) No action shall lie against the department or another

person acting in accordance with a public-private agreement for the

use of ideas and information provided by a private entity for

purposes of seeking or entering into a public-private agreement.

(9) The department shall perform a cost-benefit analysis

including a risk transfer or allocation assessment to determine

whether a proposed public-private agreement is the most

economically beneficial way for the state to perform the proposed

project. The department shall choose an appropriate methodology to

utilize in the cost-benefit analysis and shall state the

assumptions used in the cost-benefit analysis. The cost-benefit

analysis shall include all necessary monitoring and oversight of

any private entity by a public entity. The department shall publish

the results of the analysis on its website. The commission shall

not approve a public-private agreement under section 7(1)(c) unless

it determines that the public-private agreement is the most

economically beneficial way for the state to perform the project,

including consideration of whether the agreement reduces risk to

the state, including financial risks, compared to other options and

financing arrangements.

Sec. 7e. (1) Whether used by the department, another

instrumentality of government, or a private entity under a public-

private agreement, a public transportation facility, including, but

not limited to, real property and tangible personal property used

exclusively with a public transportation facility, that is owned by

the department or another instrumentality of government is exempt

from all ad valorem property taxes and all assessments levied

against property by this state or any political subdivision of this

state to the same extent that the property owned by the department

or instrumentality of government would otherwise be exempt from ad

valorem property taxes and assessments.

(2) No person shall by reason of the use of motor fuel within

the limits of a public transportation facility authorized by a

public-private agreement be exempt from or eligible for a refund of

a motor fuel tax imposed by this state or a political subdivision

of this state.

(3) Subject to approval from the commission and compliance

with applicable federal laws, the department has exclusive

authority to determine where and whether to establish a public

transportation facility authorized by a public-private agreement

and the scope and nature of the facility.

(4) Revenue attributable to a public transportation facility

authorized by a public-private agreement that is payable to the

department shall be deposited in the state trunk line fund,

House Bill No. 4961 (H-6) as amended May 26, 2010

comprehensive transportation fund, or aeronautics fund, as

indicated by the nature of the public transportation facility and

provided in the public-private agreement.

Sec. 7f. (1) The department may issue and sell bonds or notes

for the purpose of providing funds to carry out the provisions of

this act with respect to the development, acquisition,

construction, financing, maintenance, or operation of a public

transportation facility provided for by a public-private agreement

or the refunding of any bonds or notes, together with any costs

associated with the transaction.

(2) Any bond or note issued under subsection (1) does not

constitute a pledge of the faith and credit or indebtedness of this

state or any political subdivision of this state within the meaning

or application of any constitutional provision or limitation. A

bond or note issued under subsection (1) is payable solely as to

both principal and interest from revenues generated from use of the

public transportation facility authorized by the public-private

agreement, the proceeds of bonds or notes sold to finance the

refunding of the outstanding bonds or notes, if any, or investment

earnings on the proceeds of the bonds or notes.

(3) The department may retain services and enter into any

contracts that are necessary or useful for the issuance and sale of

bonds, notes, or other financial instruments under this section.

(4) For the purpose of financing a public transportation

facility, [this state,] the department, [the concessionaire, or, to the

extent permitted

by law, an instrumentality of government] may apply for, obtain, issue,

and use private

activity bonds or other financial instruments available under any

state or federal law or program. An instrumentality of government

may act as a conduit issuer and transfer the proceeds of private

activity bonds or similar financial instruments to a concessionaire

if authorized by a public-private agreement. The bonds or

instruments shall not pledge the full faith and credit of this

state or any political subdivision of this state and shall not be a

debt of this state or any political subdivision of this state.

(5) This section does not limit an instrumentality of

government's authority to issue bonds or other financial

instruments for transportation projects under other laws. A public

transportation facility may be financed with funds provided or

raised under other laws, including, but not limited to, laws

authorizing the sale of bonds.

Sec. 7g. (1) The department may apply for and accept from the

United States or any of its agencies, including, but not limited

to, a federal infrastructure bank, funds that are available to the

department for carrying out a public-private agreement, whether the

funds are made available by grant, loan, line of credit, loan

guarantee, or other financial assistance.

(2) The department may assent to any federal requirements,

conditions, or terms of any federal funding accepted under this

section other than a pledge of the faith and credit of this state

or any political subdivision of this state or another requirement,

condition, or term prohibited by the state constitution of 1963.

(3) The department may enter into agreements or other

arrangements with the United States or any of its agencies as may

be necessary for implementing a public-private agreement.

House Bill No. 4961 (H-6) as amended May 26, 2010

(4) The department may accept from any source, and use for

supporting a public transportation facility authorized by a public-

private agreement, any grant, donation, gift, or other form of

conveyance of land, money, other real or personal property, or

other item of value. A public transportation facility authorized by

a public-private agreement may be financed in whole or in part by

contribution of any funds or property made by any person or entity.

(5) The department may combine federal, state, local, and

private funds to finance a public transportation facility

authorized by a public-private agreement.

(6) For any international bridge crossing that does not exist

as of the effective date of the amendatory act that added this

section, a public-private agreement shall not require a pledge of

the full faith and credit of this state or of any political

subdivision of this state [within the meaning or application of any

constitutional provision or limitation].

(7) For any international bridge crossing that does not exist

as of the effective date of the amendatory act that added this

section, prior to releasing a request for proposals for a public-

private agreement, the department shall only acquire property

needed for the international bridge crossing in this state through

voluntary acquisitions from willing sellers except that the

department may exercise its power of eminent domain to acquire

property if it gives notice to the legislature at least 30 days

before filing condemnation proceedings.

Sec. 7h. (1) All law enforcement officers of this state and

local units of government in which all or part of a public

transportation facility authorized by a public-private agreement is

located shall have the same powers and jurisdiction within the

limits of the public transportation facility as they have in their

respective areas of jurisdiction to enforce traffic and motor

vehicle laws. Authorized emergency vehicles and occupants of

authorized emergency vehicles shall be afforded access to a public

transportation facility while in the performance of an official

duty without the payment of a user fee or other charge. As used in

this subsection, "authorized emergency vehicle" means that term as

defined in section 2 of the Michigan vehicle code, 1949 PA 300, MCL

257.2.

(2) Punishment for violations of traffic and motor vehicle

laws within the limits of a public transportation facility

authorized by a public-private agreement shall be as generally

prescribed by law.

(3) The public-private agreement shall include provisions

relating to the permitted retention and use by the concessionaire

of collected data and customer information and shall prohibit the

sale or use of such data and information for commercial purposes

unrelated to the use of the public transportation facility.

Measures and devices to record users of public transportation

facilities may be utilized to facilitate the collection of user

fees. A recording of the use of a public transportation facility

shall not be used or disclosed except under 1 or more of the

following circumstances:

(a) In enforcement and collection proceedings under this act

to establish the use and failure to pay the user fee imposed for

use of that public transportation facility.

(b) Use by a police officer while lawfully enforcing his or

her duties as a police officer.

transportation facility that do not disclose the identity of

specific users of the facility.

(4) A person who fails to pay a user fee imposed for use of a

public transportation facility is responsible for a civil

infraction and shall pay $50.00 as a civil fine. In addition, the

person shall pay the operator of the public transportation facility

2 times the amount of the user fee. If that sum remains unpaid to

the operator of the public transportation facility for 180 days

after the person's use of the public transportation facility, the

department, an authority, an instrumentality of government, or a

private entity authorized to do so by the department, may bring a

civil action against the person to collect the unpaid charges in a

court having jurisdiction. If the civil action results in a

judgment for unpaid charges, the defendant shall also be required

to reimburse the plaintiff for all filing fees incurred by the

plaintiff plus $500.00 in compensation for the costs of bringing

the civil action.

(5) During the period that a person owes and has failed to pay

charges, fees, and costs under subsection (3) or (4), the person

and a motor vehicle used by the person may be barred from using the

public transportation facility.

(6) Except as provided in section 675b of the Michigan vehicle

code, 1949 PA 300, MCL 257.675b, involving leased vehicles, proof

that a particular vehicle used a public transportation facility

without payment of the applicable user fee, together with proof

from the department of state of the name of the vehicle's

registered owner, creates a presumption that the vehicle's

registered owner was the person who used the public transportation

facility, who failed to pay the user fee, and who is prima facie

responsible for the unpaid charges. If the conditions of section

675b of the Michigan vehicle code, 1949 PA 300, MCL 257.675b, are

satisfied, the lessee or renter of a motor vehicle and not the

leased vehicle owner is the person liable under this section, for

which purposes the entity that gives notice of unpaid charges to

the vehicle's registered owner shall be given the notice that would

otherwise be given to the clerk of the court or parking violations

bureau under section 675b of the Michigan vehicle code, 1949 PA

300, MCL 257.675b.

(7) The owner of a vehicle alleged to have used a public

transportation facility without paying an applicable user fee may

assert as an affirmative defense that the vehicle in question, at

the time of the use of the public transportation facility, was in

the possession of a person whom the owner had not knowingly

permitted to operate the vehicle.

Sec. 7i. Notwithstanding any other provision of this act, if

federal funds are used for a public transportation facility, the

applicable federal law or rules are controlling in the event of a

conflict with this act.

Sec. 10. Documents and instruments of any kind authorized to

be issued or executed by the commission shall be issued or executed

in the name of the "Michigan state ~~highway~~ transportation

commission" by the ~~chairman~~ chairperson of the commission, or to

the extent expressly authorized by bylaw or resolution, by the vice

~~chairman~~ chairperson, other member, the director, or other

subordinate. Documents or instruments ~~which~~ that convey interests

or rights in land shall be executed by the ~~chairman or vice~~

~~chairman and the~~ director or ~~a deputy director~~ an employee of the

department designated by the ~~commission.~~ director.