PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the state transportation department for the fiscal year ending September 30, 2022, from the following funds:

DEPARTMENT OF TRANSPORTATION
APPROPRIATION SUMMARY
Full-time equated unclassified positions	1.0

Full-time equated classified positions	2,817.6
GROSS APPROPRIATION		$	5,835,839,200
Total interdepartmental grants and intradepartmental transfers			4,044,800
ADJUSTED GROSS APPROPRIATIONS		$	5,831,794,400
Federal revenues:
Total federal revenues			1,448,519,000
Special revenue funds:
Total local revenues			80,782,000
Total private revenues			900,000
Total other state restricted revenues			3,701,593,400
State general fund/general purpose		$	600,000,000
Sec. 102. DEBT SERVICE
Airport safety and protection plan		$	3,438,700
Blue Water Bridge fund			6,809,800
Comprehensive transportation			10,899,800
Economic development			11,485,600
Local bridge fund			2,330,400
State trunkline			218,679,300
GROSS APPROPRIATION		$	253,643,600
Appropriated from:
Federal revenues:
Federal aid – transportation programs			50,582,100
Special revenue funds:
Blue Water Bridge fund			6,809,800
Comprehensive transportation fund			10,899,800
Economic development fund			11,485,600
Local bridge fund			2,330,400

State aeronautics fund		3,438,700
State trunkline fund		168,097,200
State general fund/general purpose	$	0
Sec. 103. COLLECTION, ENFORCEMENT, AND OTHER AGENCY SUPPORT SERVICES
CTF grant to civil service commission	$	250,000
CTF grant to department of attorney general		107,600
CTF grant to department of technology, management, and budget		34,500
CTF grant to department of treasury		46,900
CTF grant to legislative auditor general		43,200
MTF grant to department of environment, Great Lakes, and energy		1,491,400
MTF grant to department of state for collection of revenue and fees		20,000,000
MTF grant to department of treasury		3,011,900
MTF grant to legislative auditor general		350,200
SAF grant to civil service commission		150,000
SAF grant to department of attorney general		188,200
SAF grant to department of technology, management, and budget		28,000
SAF grant to department of treasury		84,100
SAF grant to legislative auditor general		33,800
STF grant to civil service commission		6,321,000
STF grant to department of attorney general		2,123,200
STF grant to department of state police		12,154,500
STF grant to department of technology, management, and budget		1,177,900

STF grant to department of treasury			148,800
STF grant to legislative auditor general			813,500
GROSS APPROPRIATION		$	48,558,700
Appropriated from:
Special revenue funds:
Comprehensive transportation fund			482,200
Michigan transportation fund			24,853,500
State aeronautics fund			484,100
State trunkline fund			22,738,900
State general fund/general purpose		$	0
Sec. 104. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	1.0
Full-time equated classified positions	251.3
Unclassified salaries--FTE position	1.0	$	173,400
Asset management council			1,876,400
Business support services--FTEs	41.0		6,727,800
Commission audit and support services--FTEs	29.3		3,553,000
Economic development and enhancement programs--FTEs	10.0		1,723,300
Finance, contracts, and support services--FTEs	171.0		22,352,900
Property management			6,957,400
Worker's compensation			1,721,800
GROSS APPROPRIATION		$	45,086,000
Appropriated from:
Interdepartmental grant revenues:
IDG for accounting service center user charges			4,044,800
Special revenue funds:

Comprehensive transportation fund			1,550,200
Economic development fund			402,100
Michigan transportation fund			4,386,900
State aeronautics fund			756,100
State trunkline fund			33,945,900
State general fund/general purpose		$	0
Sec. 105. INFORMATION TECHNOLOGY
Information technology services and projects		$	39,512,400
GROSS APPROPRIATION		$	39,512,400
Appropriated from:
Federal revenues:
Federal aid – transportation programs			520,500
Special revenue funds:
Blue Water Bridge fund			56,900
Comprehensive transportation fund			231,700
Economic development fund			38,400
Michigan transportation fund			302,800
State aeronautics fund			180,700
State trunkline fund			38,181,400
State general fund/general purpose		$	0
Sec. 106. TRANSPORTATION PLANNING
Full-time equated classified positions	136.0
Planning services--FTEs	136.0	$	41,656,400
Grants to regional planning councils			488,800
GROSS APPROPRIATION		$	42,145,200
Appropriated from:
Federal revenues:
Federal aid – transportation programs			24,000,000

Special revenue funds:
Comprehensive transportation fund			622,000
Michigan transportation fund			9,816,400
State aeronautics fund			15,700
State trunkline fund			7,691,100
State general fund/general purpose		$	0
Sec. 107. DESIGN AND ENGINEERING SERVICES
Full-time equated classified positions	1,506.3
Program development and delivery--FTEs	1,012.3	$	96,634,600
System operations management--FTEs	337.0		56,892,400
Business services--FTEs	157.0		23,551,900
GROSS APPROPRIATION		$	177,078,900
Appropriated from:
Federal revenues:
Federal aid – transportation programs			23,529,800
Special revenue funds:
Comprehensive transportation fund			187,100
Michigan transportation fund			15,621,100
State aeronautics fund			160,300
State trunkline fund			137,580,600
State general fund/general purpose		$	0
Sec. 108. HIGHWAY MAINTENANCE
Full-time equated classified positions	762.0
State trunkline operations--FTEs	762.0	$	425,881,200
GROSS APPROPRIATION		$	425,881,200
Appropriated from:
Special revenue funds:
State trunkline fund			425,881,200

State general fund/general purpose		$	0
Sec. 109. ROAD AND BRIDGE PROGRAM
Cities and villages		$	652,686,200
County road commissions			1,170,643,500
Grants to local programs			33,000,000
Local agency wetland mitigation bank fund			2,000,000
Local bridge program			27,812,600
Local federal aid and road and bridge construction			290,587,800
Movable bridge			5,553,000
Rail grade crossing			3,000,000
Rail grade crossing - surface improvements			3,000,000
State trunkline federal aid and road and bridge construction			1,328,645,000
GROSS APPROPRIATION		$	3,516,928,100
Appropriated from:
Federal revenues:
Federal aid – transportation programs			1,141,836,600
Special revenue funds:
Local funds			30,003,500
Blue Water Bridge fund			4,079,500
Local bridge fund			27,812,600
Michigan transportation fund			1,869,882,700
State trunkline fund			443,313,200
State general fund/general purpose		$	0
Sec. 110. BLUE WATER BRIDGE
Full-time equated classified positions	41.0
Blue Water Bridge operations--FTEs	41.0	$	6,714,700

GROSS APPROPRIATION		$	6,714,700
Appropriated from:
Special revenue funds:
Blue Water Bridge fund			6,714,700
State general fund/general purpose		$	0
Sec. 111. TRANSPORTATION ECONOMIC DEVELOPMENT
Community service infrastructure fund		$	3,000,000
Forest roads			5,000,000
Rural county primary			7,650,500
Rural county urban system			2,500,000
Target industries/economic redevelopment			15,800,900
Urban county congestion			7,650,500
GROSS APPROPRIATION		$	41,601,900
Appropriated from:
Special revenue funds:
Economic development fund			41,601,900
State general fund/general purpose		$	0
Sec. 112. AERONAUTICS SERVICES
Full-time equated classified positions	46.0
Air fleet operations and maintenance--FTEs	8.0	$	1,774,500
Air service program			50,000
Aviation services--FTEs	38.0		5,303,200
GROSS APPROPRIATION		$	7,127,700
Appropriated from:
Special revenue funds:
State aeronautics fund			7,127,700
State general fund/general purpose		$	0
Sec. 113. PUBLIC TRANSPORTATION SERVICES

Full-time equated classified positions	36.0
Passenger transportation services--FTEs	36.0	$	6,040,200
GROSS APPROPRIATION		$	6,040,200
Appropriated from:
Federal revenues:
Federal aid – transportation programs			972,100
Special revenue funds:
Comprehensive transportation fund			5,068,100
State general fund/general purpose		$	0
Sec. 114. LOCAL BUS TRANSIT
Local bus operating		$	196,750,000
Nonurban operating/capital			30,027,900
GROSS APPROPRIATION		$	226,777,900
Appropriated from:
Federal revenues:
Federal aid – transportation programs			28,027,900
Special revenue funds:
Local funds			2,000,000
Comprehensive transportation fund			196,750,000
State general fund/general purpose		$	0
Sec. 115. INTERCITY PASSENGER AND FREIGHT
Full-time equated classified positions	39.0
Detroit/Wayne County Port Authority		$	400,000
Freight property management			1,000,000
Intercity services			8,060,000
Marine passenger service			1,012,000
Office of rail--FTEs	39.0		6,752,500
Rail operations and infrastructure			98,738,000

GROSS APPROPRIATION	$	115,962,500
Appropriated from:
Federal revenues:
Federal aid – transportation programs		24,500,000
Special revenue funds:
Local funds		760,000
Private funds		900,000
Comprehensive transportation fund		80,316,800
Intercity bus equipment fund		600,000
Michigan transportation fund		2,116,400
Rail freight fund		6,000,000
State trunkline fund		769,300
State general fund/general purpose	$	0
Sec. 116. PUBLIC TRANSPORTATION DEVELOPMENT
Municipal credit program	$	2,000,000
Service initiatives		8,475,100
Specialized services		22,313,900
Transit capital		109,070,700
Van pooling		150,000
GROSS APPROPRIATION	$	142,009,700
Appropriated from:
Federal revenues:
Federal aid – transportation programs		48,550,000
Special revenue funds:
Local funds		35,510,000
Comprehensive transportation fund		57,949,700
State general fund/general purpose	$	0
Sec. 117. CAPITAL OUTLAY

Salt storage buildings and containment control	$	2,500,000
Special maintenance, remodeling, and additions		3,001,500
Airport safety, protection, and improvement program		121,576,500
Detroit Metropolitan Wayne County Airport		5,200,000
GROSS APPROPRIATION	$	132,278,000
Appropriated from:
Federal revenues:
Federal aid – transportation programs		106,000,000
Special revenue funds:
Local funds		12,508,500
Qualified airport fund		5,200,000
State aeronautics fund		3,068,000
State trunkline fund		5,501,500
State general fund/general purpose	$	0
Sec. 118. ONE-TIME BASIS ONLY
Local road and bridge bundling initiative	$	226,000,000
Rail freight/rail economic development		8,492,500
Transportation bond repayment sinking trust fund		374,000,000
GROSS APPROPRIATION	$	608,492,500
Appropriated from:
Comprehensive transportation fund		8,492,500
State general fund/general purpose	$	600,000,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2021-2022

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for fiscal year 2021-2022 is $4,301,593,400.00 and state spending from state sources to be paid to local units of government for fiscal year 2021-2022 is $2,410,816,700.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

STATE TRANSPORTATION DEPARTMENT
Grants to regional planning councils	$	488,800
Cities and villages		652,686,200
County road commissions		1,170,643,500
Grants to local programs		33,000,000
Local bridge program		27,812,600
Local agency wetland mitigation		2,000,000
Movable bridge		2,776,500
Rail grade crossing		1,500,000
Rail grade surface crossing improvements		3,000,000
Transportation economic development		27,129,400
Air service program		50,000
Local bus operating		196,750,000
Detroit/Wayne County Port Authority		400,000
Marine passenger service		512,000
Municipal credit program		2,000,000
Service initiatives		6,500,100
Specialized services		8,228,900
Transit capital		41,070,700

Airport safety, protection, and improvement program		3,068,000
Detroit Metropolitan Wayne County Airport		5,200,000
Total payments to local units of government	$	2,410,816,700

Sec. 202. The appropriations authorized under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. As used in this part and part 1:

(a) "CTF" means comprehensive transportation fund.

(b) "Department" means the state transportation department.

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

Transportation.

(e) "DOT-FHWA" means DOT, Federal Highway Administration.

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

(g) "IDG" means interdepartmental grant.

(h) "MTF" means Michigan transportation fund.

(i) "SAF" means state aeronautics fund.

(j) "STF" means state trunkline fund.

Sec. 204. The departments and agencies receiving appropriations in part 1 shall use the internet to fulfill the reporting requirements of this part. This requirement shall include transmission of reports via email to the recipients identified for each reporting requirement, and it shall include placement of reports on an internet site.

Sec. 205. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available. Preference shall be given to

goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality. In addition, preference shall be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.

Sec. 206. The director shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services, supplies, or both.

Sec. 207. The departments and agencies receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1 of each year. The travel report shall be a listing of all travel by classified and unclassified employees outside this state in the immediately preceding fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The report shall be submitted to the senate and house appropriations committees, the house and senate fiscal agencies, and the state budget director. The report shall include the following information:

(a) The dates of each travel occurrence.

(b) The transportation and related costs of each travel occurrence, including the proportion funded with state general fund/general purpose revenues, the proportion funded with state restricted revenues, the proportion funded with federal revenues, and the proportion funded with other revenues.

Sec. 208. Funds appropriated in part 1 shall not be used by a

principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. This prohibition does not apply to legal services for bonding activities and for those activities that the attorney general authorizes.

Sec. 209. Not later than November 30, the state budget office shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the prior fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the chairpersons of the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies.

Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $40,000,000.00 for federal contingency authorization. These funds are not available for expenditure until they have been transferred to another line item in part 1 pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $5,000,000.00 for state restricted contingency authorization. These funds are not available for expenditure until they have been transferred to another line item in part 1 pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for local contingency authorization. These funds are not available for

expenditure until they have been transferred to another line item in part 1 pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for private contingency authorization. These funds are not available for expenditure until they have been transferred to another line item in part 1 pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 211. The department shall cooperate with the department of technology, management, and budget to maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following:

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

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

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

Sec. 212. Within 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide the senate and house appropriations chairs, the chairpersons of the senate and house appropriations subcommittees on transportation, and the senate and house fiscal agencies with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the fiscal years ending September

30, 2021 and September 30, 2022.

Sec. 213. The department shall maintain, on a publicly accessible website, a department scorecard that identifies, tracks, and regularly updates key metrics that are used to monitor and improve the department's performance.

Sec. 214. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2022 are $66,849,000.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $37,452,900.00. Total agency appropriations for retiree health care legacy costs are estimated at $29,397,000.00.

Sec. 215. A department shall not take disciplinary action against an employee of the department or departmental agency in the state classified civil service because the employee communicates with a member of the senate or house of representatives or a member's staff, unless the communication is prohibited by law and the department or agency taking disciplinary action is exercising its authority as provided by law.

Sec. 216. (1) On a quarterly basis, the department shall report to the senate and house appropriations committees, the senate and house appropriations subcommittees on the department budget, and the senate and house fiscal agencies the following information:

(a) The number of FTEs in pay status by type of staff and civil service classification.

(b) A comparison by line item of the number of FTEs authorized from funds appropriated in part 1 to the actual number of FTEs employed by the department at the end of the reporting period.

(2) By April 1 of the current fiscal year and semiannually

thereafter, the department shall report to the senate and house appropriations committees, the senate and house appropriations subcommittees on the department budget, and the senate and house fiscal agencies the following information:

(a) Number of employees that were engaged in remote work in 2021.

(b) Number of employees authorized to work remotely and the actual number of those working remotely in the current reporting period.

(d) Reduced use of office space associated with remote work.

Sec. 217. Appropriations in part 1 shall, to the extent possible by the department, not be expended until all existing work project authorization available for the same purposes is exhausted.

Sec. 218. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this article, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within this article for the particular department, board, commission, officer, or institution.

Sec. 219. The departments and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 220. The department shall report no later than April 1 on each specific policy change made to implement a public act

affecting the department that took effect during the prior calendar year to the senate and house appropriations committees, the senate and house subcommittees on transportation, the joint committee on administrative rules, and the senate and house fiscal agencies.

Sec. 221. To the extent possible, the department shall provide notice to the speaker of the house, the house minority leader, the senate majority leader, the senate minority leader, the house and senate standing committees on transportation, the appropriate house and senate appropriations subcommittees on transportation, and the house and senate fiscal agencies on proposed federal rule changes related to the department that would require amendments to the laws of this state. The notice shall be given within 30 business days of the proposed federal rule being posted to the Federal Register and shall include a description of the proposed federal rule, the publication date, the date when public comment closes, the document citation, and a description of the statutory changes needed when the rule is finalized.

Sec. 222. (1) From the funds appropriated in part 1, the department shall do all of the following:

(a) Report to the house and senate appropriations committees, the house and senate fiscal agencies, the house and senate policy offices, and the state budget office any amount of severance pay for a department director, deputy director, or other high-ranking department official not later than 14 days after a severance agreement with the director or official is signed. The name of the director or official and the amount of severance pay must be included in the report required by this subdivision.

(b) Maintain an internet site that posts any severance pay in excess of 6 weeks of wages, regardless of the position held by the

former department employee receiving severance pay.

(c) By February 1, 2022, report to the house and senate appropriations subcommittees on the department budget, the house and senate fiscal agencies, the house and senate policy offices, and the state budget office on the total amount of severance pay remitted to former department employees during the fiscal year ending September 30, 2021 and the total number of former department employees that were remitted severance pay during the fiscal year ending September 30, 2021.

(2) As used in this section, "severance pay" means compensation that is both payable or paid upon the termination of employment and in addition to either wages or benefits earned during the course of employment or generally applicable retirement benefits.

Sec. 223. Any department, agency, board, commission, subdivision, or other executive branch entity or official of this state that receives funding under part 1 shall not do any of the following:

(a) Require as a condition of accessing any state services or facilities that an individual provide proof he or she has received a COVID-19 vaccine.

(b) Produce, develop, and issue a COVID-19 vaccine passport for the purpose of certifying that an individual has received a COVID-19 vaccine.

(c) Provide information of an individual's COVID-19 vaccine status to any person, company, or governmental entity for inclusion in a COVID-19 vaccine passport.

Sec. 270. In order to reduce costs and maintain quality, it is the intent of the legislature that, excluding the fleet of motor

vehicles for the department of state police, the department will prioritize the utilization of remanufactured parts as the primary means of maintenance and repair for the state of Michigan's fleet of motor vehicles.

DEPARTMENT ADMINISTRATION AND SUPPORT

Sec. 301. The department may establish a fee schedule and collect fees sufficient to cover the costs to issue the permits that the department is authorized by law to issue upon request, unless otherwise stipulated by law. All permit fees are nonrefundable application fees and shall be credited to the appropriate fund to recover the direct and indirect costs of receiving, reviewing, and processing the requests.

Sec. 302. No funds from the appropriation in part 1 may be used to establish nondirectional markings on the paved surfaces of public roads or streets of this state.

Sec. 303. When the department places signs identifying trunkline construction projects as bond-financed, the signs shall identify the total cost of the project and the estimated borrowing costs associated with the bonds used to finance the project. Text and numeric figures identifying estimated borrowing costs associated with bonds used to finance projects shall be of the same font and font size as the text and numeric figures identifying trunkline construction projects as bond-financed.

Sec. 304. If, as a requirement of bidding on a highway project, the department requires a contractor to submit financial or proprietary documentation as to how the bid was calculated, that bid documentation shall be kept confidential and shall not be disclosed other than to a department representative without the

contractor's written consent. The department may disclose the bid documentation if necessary to address or defend a claim by a contractor.

Sec. 305. The department may permit space on public passenger transportation properties to be occupied by public or private tenants. The department shall require that revenue from the tenants be placed in an account to be used to pay the costs to maintain and improve the property.

Sec. 306. (1) The amounts appropriated in part 1 to support tax and fee collection, law enforcement, and other program services provided to the department and to transportation funds by other state departments shall be expended from transportation funds pursuant to annual contracts between the department and those other state departments. The contracts shall be executed prior to the expenditure or obligation of those funds. The contracts shall provide, but are not limited to, the following data applicable to each state department:

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

(b) Description of services provided to the department and/or transportation funds and financed with transportation funds.

(c) Detailed cost allocation methods appropriate to the type of services being provided and the activities financed with transportation funds.

(2) Not later than 2 months after publication of the state of Michigan comprehensive annual financial report, each state department receiving funding pursuant to an interdepartment contract with the department shall submit a written report to the department, the state budget director, the house and senate fiscal agencies, and the auditor general stating by spending authorization

account the amount of estimated funds contracted with the department, the amount of funds expended, the amount of funds returned to the transportation funds, and any unreimbursed transportation-related costs incurred but not billed to transportation funds. A copy of the report shall be submitted to the auditor general, and the report shall be subject to audit.

(3) The auditor general shall use a risk-based approach in developing an audit program for the use of transportation funds.

Sec. 307. Before March 1 of each year, the department will provide to the legislature, the state budget director, and the house and senate fiscal agencies its rolling 5-year plan listing by county or by county road commission all highway construction projects for the fiscal year and all expected projects for the ensuing fiscal years.

Sec. 310. The department shall provide in a timely manner copies of the agenda, approved minutes, and audio recording of monthly transportation commission meetings to the members of the house and senate appropriations subcommittees on transportation, the house and senate fiscal agencies, and the state budget director.

Sec. 313. (1) From funds appropriated in part 1, the department may increase a state infrastructure bank program and grant or loan funds in accordance with regulations of the state infrastructure bank program of the United States Department of Transportation. The state infrastructure bank is to be administered by the department for the purpose of providing a revolving, self-sustaining resource for financing transportation infrastructure projects.

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

received by the state as federal grants, repayment of state infrastructure bank loans, or other reimbursement or revenue received by the state as a result of projects funded by the program and interest earned on that money shall be deposited in the revolving state infrastructure bank fund and shall be available for transportation infrastructure projects. At the close of the fiscal year, any unencumbered funds remaining in the state infrastructure bank fund shall remain in the fund and be carried forward into the succeeding fiscal year.

(3) The department shall submit a report to the state budget director, the house and senate appropriations subcommittees on transportation, and the house and senate fiscal agencies on the status of the state infrastructure bank. The report shall be submitted on or before December 1, 2021. The report shall include all of the following:

(a) The balance in the state infrastructure bank at September 30, 2021, including a breakdown of the balance by cash and cash equivalents, outstanding loans, and balance available for loan to local agencies.

(b) A breakdown of the state infrastructure loan balance by amounts designated as originating from federal sources and the amounts originating from nonfederal sources.

Sec. 319. The department shall post signs at each rest area to identify the agency or contractor responsible for maintenance of the rest area. The signs shall include a department telephone number and shall indicate that unsafe or unclean conditions at the rest area may be reported to that telephone number.

Sec. 353. (1) The department shall review its contractor payment process and ensure that all prime contractors are paid promptly. The department shall ensure that prime contractors are in compliance with special provision 109.10 regarding the prompt payment of subcontractors.

(2) The department shall report to the house and senate appropriations subcommittees on transportation and the house and senate fiscal agencies, by April 10 of each year, on its compliance with this section. The report shall include each instance of late payment of contractors and subcontractors, the amounts due each contractor and subcontractor, and copies of those documents.

Sec. 357. When presented with complete local federal aid project submittals, the department shall complete all necessary reviews and inspections required to let local federal aid projects within 120 days of receipt. The department shall implement a system for monitoring the local federal aid project review process.

Sec. 375. The department is prohibited from reimbursing contractors or consultants for costs associated with groundbreaking ceremonies, receptions, open houses, or press conferences related to transportation projects funded, in whole or in part, by revenue appropriated in part 1.

Sec. 377. No funds from the appropriation in part 1 may be expended for any contractual service contract with a value in excess of $100,000.00 with any vendor in which a former department director has direct input into the solicitation response or contract negotiation process, or will be compensated for any work performed on the contract within 24 months of that former director's last employment with the department. This section may be waived by resolution of the Michigan house of representatives and

senate.

Sec. 381. The department shall require as a condition of each contract or subcontract for construction, maintenance, or engineering services that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States. The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department. The department shall report to the house and senate appropriations committees and the house and senate fiscal agencies by March 1 of each year describing the processes it has developed and implemented under provisions of this section. As used in this section, "E-Verify" means an internet-based system operated by the Department of Homeland Security, U.S. Citizenship and Immigration Services in partnership with the Social Security Administration.

Sec. 382. In administering a contract with a county road commission, city, or village that allocates costs of construction or reconstruction of highways, roads, and streets as provided in section 18d of 1951 PA 51, MCL 247.668d, the department shall submit the final cost-sharing bill to the county road commission, city, or village not later than 2 years after the date of the final contract payment to the construction contractor.

Sec. 383. (1) The department shall prepare a report on use of department-owned aircraft during the fiscal year ending September 30, 2021. With respect to each department-owned aircraft, the report shall include all of the following:

(a) Total hours of usage.

(b) Description of specific flights including dates of travel, names of passengers including state agency, university, or local government affiliation, travel origin and destination, and total estimated costs associated with the air travel.

(2) The report shall be submitted to the senate and house appropriations subcommittees on transportation, state budget director, and the house and senate fiscal agencies no later than February 1, 2022.

(3) The department shall maintain a system for recovering the cost of operating department-owned aircraft through charges to aircraft users.

Sec. 384. (1) Except as otherwise provided in subsection (2), the department shall not obligate the state to expend any state transportation revenue for construction planning or construction of the Gordie Howe International Crossing or a renamed successor. In addition, except as provided in subsection (2), the department shall not commit the state to any new contract related to the construction planning or construction of the Gordie Howe International Crossing or a renamed successor that would obligate the state to expend any state transportation revenue. An expenditure for staff resources used in connection with project activities, which expenditure is subject to full and prompt reimbursement from Canada, shall not be considered an expenditure of state transportation revenue.

(2) If the legislature enacts specific enabling legislation for the construction of the Gordie Howe International Crossing or a renamed successor, subsection (1) does not apply once the enabling legislation goes into effect.

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

the state budget director, the speaker of the house of representatives, the house of representatives minority leader, the senate majority leader, the senate minority leader, the house and senate appropriations subcommittees on transportation, and the house and senate fiscal agencies on all of the following:

(a) All expenditures made by the state related to the Gordie Howe Bridge.

(b) All reimbursements made by Canada under section 384(1) of this part to the state for expenditures for staff resources used in connection with project activities.

(c) All eminent domain and condemnation powers used, the related real estate involved in any governmental taking, the price paid for those properties, and the beneficiary's name or associated corporation.

(2) The initial report required under subsection (1) shall be submitted on or before December 1, 2021. The initial report shall cover the fiscal year ending September 30, 2021.

Sec. 386. On or before May 1 of each year, the department shall submit a report to the state budget director, the house and senate appropriations subcommittees on transportation, and the house and senate fiscal agencies on its toll credit program. The report shall include the following information:

(a) The amount of toll credits earned and certified by the DOT-FHWA in the prior fiscal year.

(b) The value of toll credits used by programs and projects in the previous fiscal year.

(d) A discussion of the department's strategy for using toll

credits.

Sec. 387. (1) Within 60 days of completion of any formal traffic study, formal traffic control study, or formal traffic mitigation study, the department shall post the results of the study on the department's website.

(2) As used in this section, the terms "traffic study", "traffic control study", and "traffic mitigation study" include, but are not limited to, investigations into the need for traffic lights, reviews of traffic speeds and related recommendations regarding speed limits, and ways to improve traffic flow during peak travel times.

Sec. 389. Within 30 days of entering into a long-term agreement with a private contractor, a public agency, or a partnership between 1 or more private contractors or public agencies, the department shall notify the state budget director, the house and senate appropriations subcommittees on transportation, and the house and senate fiscal agencies of the agreement, including the subject of the agreement, the term of the agreement, and financial obligations under the agreement. As used in this section, "long-term agreement" means an agreement that obligates the department for a period of 5 years or more and that actually or contingently obligates the department to make payments over the contract period of $5,000,000.00 or more.

Sec. 393. (1) The department shall promote best practices for public transportation services in this state, including, but not limited to, all the following:

(a) Transit vehicle rehabilitation to reduce life-cycle cost of public transportation through midlife rehabilitation of transit buses.

(b) Cooperation between entities using transit, including school districts, cities, townships, and counties with a view to promoting cost savings through joint purchasing of fuel and other procurements.

(c) Coordination of transportation dollars among state departments which provide transit-related services, including the department of health and human services. Priority should be given to use of public transportation services where available.

(d) Promotion of intelligent transportation services for buses that incorporate computer and navigation technology to make transit systems more efficient, including stoplight coordinating, vehicle tracking, data tracking, and computerized scheduling.

Sec. 394. The department and local road agencies shall make the preservation of their existing road networks a funding priority.

Sec. 395. From the funds appropriated in part 1 for state trunkline federal aid road and bridge construction, the department may expend up to $10,000,000.00 on highway maintenance activities to support safety-related, high-priority, and other deferred routine maintenance needs on Michigan's state trunkline network.

Sec. 398. The department shall continue to work to eliminate fatalities and serious injuries on Michigan's trunkline network and shall maintain the Toward Zero Deaths statewide safety campaign.

Sec. 399. In developing its state trunkline road and bridge construction program, the department shall prioritize spending on capital preventative maintenance.

FEDERAL

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

planning, and construction funds made available to this state shall be allocated to transportation programs administered by local jurisdictions in accordance with section 10o of 1951 PA 51, MCL 247.660o. A local road agency, with respect to a project approved for federal aid funding in a state transportation improvement program, may enter into a voluntary buyout agreement with the department or with another local road agency to exchange the federal aid with state restricted transportation funds as agreed to by the respective parties. The state restricted transportation funds received in exchange for federal aid funds shall be used for the same purpose as the federal aid funds were originally intended.

MICHIGAN TRANSPORTATION FUND

Sec. 501. The money received under the motor carrier act, 1933 PA 254, MCL 475.1 to 479.42, and not appropriated to the department of licensing and regulatory affairs or the department of state police is deposited in the Michigan transportation fund.

Sec. 503. (1) At the close of the fiscal year, funds appropriated in part 1 for the transportation economic development program shall lapse to the transportation economic development fund.

(2) At the close of the fiscal year, funds appropriated in part 1 for the local bridge program shall carry forward and are appropriated for the purposes defined in section 10(5) of 1951 PA 51, MCL 247.660.

(3) Interest earned in the department of transportation economic development fund and local bridge fund shall remain in the respective funds and shall be allocated to the respective programs based on actual interest earned at the end of each fiscal year.

(4) In addition to the funds appropriated in part 1, the department of transportation economic development fund and local bridge fund may receive federal, local, or private funds or restricted source funds such as interest earnings. These funds are appropriated for projects that are consistent with the purposes of the respective funds.

(5) None of the funds statutorily dedicated to the transportation economic development fund and local bridge fund shall be diverted to other projects.

Sec. 504. Funds from the Michigan transportation fund shall be distributed to the comprehensive transportation fund, the economic development fund, the recreation improvement fund, and the state trunkline fund, in accordance with this part and part 1 and part 711 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.71101 to 324.71108, and may only be used as specified in this part and part 1, 1951 PA 51, MCL 247.651 to 247.675, and part 711 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.71101 to 324.71108.

STATE TRUNKLINE FUND

Sec. 601. The department shall maintain documentation to support initial acceptance of warrantied projects, interim and final inspections, and notifications to contractors that the warranty period had expired. The department also shall review and evaluate consultant evaluation requirements or recommendations and update existing policies and procedures accordingly.

Sec. 604. At the close of the fiscal year, any unencumbered and unexpended balance in the state trunkline fund shall remain in the state trunkline fund and shall carry forward and is

appropriated for federal aid road and bridge programs for projects contained in the annual state transportation program.

Sec. 612. The department shall establish guidelines governing incentives and disincentives provided under contracts for state trunkline projects. The guidelines shall include specific financial information concerning incentives and disincentives. On or before January 1 of each year, the department shall prepare a report for the immediately preceding fiscal year regarding contract incentives and disincentives. This report shall include a list, by project, of the contractors that received contract incentives and/or disincentives, the amount of the incentives and/or disincentives, the fund source of any incentives, and the number of days that each project was completed either ahead or past the contracted completion date. This report shall be provided to the senate and house appropriations subcommittees on transportation, the senate and house standing committees on transportation, and the senate and house fiscal agencies.

Sec. 613. (1) On or before February 1 of each year, the department shall prepare a report on all capital federal aid participating construction projects completed in the prior fiscal year. The report shall include the following information:

(a) Location of the project.

(b) General description of the project.

(d) As-built cost of the project.

(e) Estimated completion date.

(f) Actual completion date.

(g) Whether design engineering was performed by department staff or contract engineering consultants, and, if performed by

contract engineering consultants, the name of the contract engineering consultant firm or firms.

(h) Design engineering costs.

(i) Whether construction engineering was performed by department staff or contract engineering consultants, and, if performed by contract engineering consultants, the name of the contract engineering consultant firm or firms.

(j) Construction engineering costs.

(k) Design life.

(2) The report shall include a discussion of design engineering and construction engineering costs as a proportion of total project costs and in comparison with other state transportation agencies. The report shall also include a discussion of relative efficiency and effectiveness of work performed by department staff and work performed by contract engineering consultants.

(3) The report described in this section shall be provided to the senate and house appropriations subcommittees on transportation, the senate and house standing committees on transportation, and the senate and house fiscal agencies.

Sec. 660. (1) The legislature encourages the department to examine the use of alternative road surface materials, including recycled materials and flexible concrete, and to develop criteria and specifications for their use in both department-managed and contracted projects.

(2) The department shall report on efforts taken to implement this section. The report shall include descriptions of specific materials evaluated, evaluation methods, and results of specific field or laboratory tests. The department shall complete and submit

the report to the state budget director, the house and senate appropriations subcommittees on transportation, and the house and senate fiscal agencies on or before March 1 of each year.

Sec. 661. (1) From funds appropriated in part 1, the department shall establish a collaborative stakeholder group to review innovative road materials and innovative road and bridge design and construction specifications. The collaborative group shall include representatives from the following stakeholder groups:

(a) The DOT-FHWA.

(b) An appointee of the speaker of the house of representatives.

(d) The Asphalt Pavement Association of Michigan.

(e) The Michigan Concrete Association.

(f) The Michigan Council of Engineering Companies of Michigan.

(g) The Michigan Infrastructure and Transportation Association.

(h) The County Road Association of Michigan.

(i) The Michigan Municipal League.

(j) The Michigan Association of Drain Commissioners.

(k) The Michigan Aggregates Association.

(l) The Michigan Association of Counties.

(m) The Michigan Road Preservation Association.

(2) Beginning July 1, 2022, the department shall report quarterly on the activities of the collaborative stakeholder group established under this section. The report shall be provided by April 1, 2022 to the house appropriations committee, the senate appropriations committee, the house standing committee on

transportation and infrastructure, the senate standing committee on transportation and infrastructure, and the house and senate fiscal agencies. The report shall describe the innovative materials and innovative road and bridge design and construction specifications submitted for review. The report shall also describe, of the innovative materials and innovative road and bridge design and construction specifications submitted for review, the submissions recommended for adoption by the department and the submissions not recommended for adoption by the department. The department shall provide recipients with updated reports on activities of the collaborative stakeholder group by July 1, 2022 and September 30, 2022.

TRANSIT AND RAIL RELATED FUNDS

Sec. 701. The department shall establish an intercity bus equipment and facility fund as a subsidiary fund within the comprehensive transportation fund created under section 10b of 1951 PA 51, MCL 247.660b. Proceeds received by this state from the sale of state-owned intercity bus equipment shall be credited to the intercity bus equipment and facility fund for the purchase and repair of intercity bus equipment, as appropriated. Security deposits not returned to a lessee of state-owned intercity bus equipment under terms of the lease agreement shall be credited to the intercity bus equipment and facility fund for the repair of intercity bus equipment, as appropriated. Money received by the department from lease payments for state-owned intercity bus equipment, and facility maintenance charges under terms of leases of state-owned intercity facilities, shall be credited to the intercity bus equipment and facility fund for the purchase and

repair of intercity bus equipment or for the maintenance and rehabilitation of state-owned intercity facilities, as appropriated. At the close of the fiscal year, any funds remaining in the intercity bus equipment and facility fund shall remain in the fund and be carried forward into the succeeding fiscal year.

Sec. 702. Money that is received by this state as repayment for loans made for rail or water freight capital projects, and as a result of the sale of property or equipment used or projected to be used for rail or water freight projects shall be deposited in the rail freight fund created by section 17 of the state transportation preservation act of 1976, 1976 PA 295, MCL 474.67. At the close of the fiscal year, any funds remaining in the rail freight fund shall remain in the fund and be carried forward into the succeeding fiscal year.

Sec. 703. After receiving notification from a railroad company pursuant to section 8 of the state transportation preservation act of 1976, 1976 PA 295, MCL 474.58, the department shall immediately notify the house of representatives and senate appropriations subcommittees on transportation and the state budget office that the railroad company has filed with the appropriate governmental agencies for abandonment of a line.

Sec. 704. From the funds appropriated in part 1, the department shall prepare and transmit a report that provides detail regarding the department's obligations for programs funded under the appropriation in part 1 for rail operations and infrastructure. The report shall include a breakdown of the appropriation by program, year-to-date obligations under each program itemized by project, and an estimate of future obligations under each program itemized by project for the remainder of the fiscal year. The

initial report shall be submitted to the senate and house appropriations subcommittees on transportation, the state budget director, and the senate and house fiscal agencies, on or before February 1, 2022. The department also shall update and resubmit the final report on or before November 1, 2022.

Sec. 706. The Detroit/Wayne County Port Authority shall issue a complete operations assessment and a financial disclosure statement. The operations assessment shall include operational goals for the next 5 years and recommendations to improve land acquisition and development efficiency. The report shall be completed and submitted to the house of representatives and senate appropriations subcommittees on transportation, the state budget director, and the house and senate fiscal agencies by June 30 of each fiscal year for the prior fiscal year.

Sec. 707. (1) Before March 1 of each year, the department will provide to the legislature, the state budget office, and the house and senate fiscal agencies its rail strategic plan. The strategic plan shall include, but is not limited to, a rolling 5-year rail plan and summary of the department's obligations for programs funded under the appropriation in part 1 for rail operations and infrastructure.

(2) The rolling 5-year rail plan shall include, but is not limited to, all the following:

(a) A listing by county of all rail infrastructure projects on rail lines within the state utilizing state funds, and the estimated cost of each project.

(b) The actual or projected state expenditures for operation of passenger rail service.

of passenger service rail lines.

(3) The period of the rolling 5-year rail plan includes the current fiscal year and the 4 fiscal years immediately following the current fiscal year.

(4) The summary of the department's obligations for programs funded under the appropriation in part 1 for rail operations and infrastructure shall include a breakdown of the appropriation by program, year-to-year obligations under each program itemized by project, and an estimate of future obligations under each program itemized by project for the remainder of the fiscal year.

Sec. 720. It is the intent of the legislature that all transit agencies in Michigan should strive to achieve a farebox recovery rate of not less than 6%.

Sec. 735. For the fiscal year ending September 30, 2022, the appropriation to a street railway pursuant to section 10e(22) of 1951 PA 51, MCL 247.660e, is $0.

Sec. 736. No funds from the appropriations in part 1 may be used for a rail freight development project that supports the delivery, storage, and distribution of propane in the Upper Peninsula.

Sec. 752. The department is encouraged to meet with representatives of a rail industry trade association to provide information on the availability of rail infrastructure loan and grant funding programs and freight economic development project opportunities.

AERONAUTICS FUND

Sec. 801. Except as otherwise provided in section 903 of this part for capital outlay, at the close of the fiscal year, any

unobligated and unexpended balance in the state aeronautics fund created in the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208, shall lapse to the state aeronautics fund and be appropriated by the legislature in the immediately succeeding fiscal year.

CAPITAL OUTLAY

Sec. 901. (1) From federal-state-local project appropriations contained in part 1 for the purpose of assisting political entities and subdivisions of this state in the construction and improvement of publicly used airports and landing fields within this state, the state transportation department may permit the award of contracts on behalf of units of local government for the authorized locations not to exceed the indicated amounts, of which the state allocated portion shall not exceed the amount appropriated in part 1.

(2) Political entities and subdivisions shall provide not less than 5% of the cost of any project under this section, unless a total nonfederal share less than 10% is otherwise specified in federal law. State money shall not be allocated until local money is allocated. State money for any 1 project shall not exceed 1/3 of the total appropriation in part 1 from state funds for airport improvement programs.

(3) The Michigan aeronautics commission may take those steps necessary to match federal money available for airport construction and improvement within this state and to meet the matching requirements of the federal government. Whether acting alone or jointly with another political subdivision or public agency or with this state, a political subdivision or public agency of this state shall not submit to any agency of the federal government a project

application for airport planning or development unless it is authorized in this part and part 1 and the project application is approved by the governing body of each political subdivision or public agency making the application and by the Michigan aeronautics commission.

Sec. 903. The appropriations in part 1 for capital outlay shall be carried forward at the end of the fiscal year consistent with the provisions of section 248 of the management and budget act, 1984 PA 431, MCL 18.1248.

ONE-TIME BASIS ONLY APPROPRIATIONS

Sec. 1001. (1) The one-time funds appropriated in part 1 for local road and bridge bundling initiative must be expended by the department to support a statewide program for the rehabilitation or replacement of roads and bridges owned by local road agencies. The department shall coordinate the local road and bridge bundling initiative and issue contracts necessary for planning, design, and construction work related to roads and bridges selected for the program.

(2) The department shall provide a progress report on the local road and bridge bundling initiative to the senate and house appropriations subcommittees on transportation, the senate and house fiscal agencies, and the state budget office by September 30.

Sec. 1002. (1) Funds appropriated in part 1 for transportation bond repayment sinking trust fund shall be credited to the transportation bond repayment sinking trust fund established in Senate Bill No.___ or House Bill No. 4669 (request no. 02538'21) of the 101st Legislature.

(2) Funds appropriated in part 1 for transportation bond

repayment sinking trust fund must not be spent or otherwise distributed unless both of the following bills of the 101st Legislature are enacted into law:

(a) House Bill No. 4082.

(b) Senate Bill No.___ or House Bill No. 4669 (request no. 02538'21).