part 1

line-item appropriations

Sec. 101. There is appropriated for the state transportation department for the fiscal year ending September 30, 2026, from the following funds:

DEPARTMENT OF TRANSPORTATION
APPROPRIATION SUMMARY
Full-time equated unclassified positions	6.0
Full-time equated classified positions	3,229.3

GROSS APPROPRIATION	$	6,909,536,900
Total interdepartmental grants and intradepartmental transfers		4,366,200
ADJUSTED GROSS APPROPRIATION	$	6,905,170,700
Federal revenues:
Total federal revenues		2,329,605,500
Special revenue funds:
Total local revenues		87,448,500
Total private revenues		18,800,000
Total other state restricted revenues		4,467,316,700
State general fund/general purpose	$	2,000,000
Sec. 102. DEBT SERVICE
Airport safety and protection plan	$	3,618,200
Blue Water Bridge fund		3,320,300
Economic development		234,300
Local bridge fund		77,300
State trunkline		333,554,100
GROSS APPROPRIATION	$	340,804,200
Appropriated from:
Blue Water Bridge fund		3,320,300
Economic development fund		234,300
Local bridge fund		77,300
State aeronautics fund		3,618,200
State trunkline fund		333,554,100
State general fund/general purpose	$	0
Sec. 103. INTERDEPARTMENTAL GRANTS
CTF grant to civil service commission	$	225,300
CTF grant to department of attorney general		111,500

CTF grant to department of technology, management, and budget		40,300
CTF grant to department of treasury		54,900
CTF grant to legislative auditor general		48,500
MTF grant to department of environment, Great Lakes, and energy		2,202,200
MTF grant to department of state for collection of revenue and fees		20,000,000
MTF grant to department of treasury		3,761,300
MTF grant to legislative auditor general		393,900
SAF grant to civil service commission		140,000
SAF grant to department of attorney general		196,400
SAF grant to department of technology, management, and budget		28,600
SAF grant to department of treasury		72,200
SAF grant to legislative auditor general		38,100
STF grant to civil service commission		7,160,100
STF grant to department of attorney general		2,236,500
STF grant to department of state police		13,945,400
STF grant to department of technology, management, and budget		1,235,100
STF grant to department of treasury		167,000
STF grant to legislative auditor general		914,900
GROSS APPROPRIATION	$	52,972,200
Appropriated from:
Comprehensive transportation fund		480,500
Michigan transportation fund		26,357,400
State aeronautics fund		475,300

State trunkline fund			25,659,000
State general fund/general purpose		$	0
Sec. 104. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	6.0
Full-time equated classified positions	310.3
Unclassified salaries--FTE positions	6.0	$	993,200
Asset management council			2,299,900
Business support services--FTEs	75.0		13,174,900
Commission audit--FTEs	29.3		4,929,800
Economic development and enhancement programs--FTEs	11.0		1,897,500
Finance, contracts, and support services--FTEs	195.0		28,214,200
Property management			9,682,100
Worker's compensation			1,720,000
GROSS APPROPRIATION		$	62,911,600
Appropriated from:
IDG for accounting service center user charges			4,366,200
Comprehensive transportation fund			1,884,400
Economic development fund			413,800
Michigan transportation fund			5,080,600
State aeronautics fund			746,500
State trunkline fund			50,420,100
State general fund/general purpose		$	0
Sec. 105. INFORMATION TECHNOLOGY
Information technology services and projects		$	42,299,500
GROSS APPROPRIATION		$	42,299,500
Appropriated from:

Federal aid - transportation programs			520,500
Blue Water Bridge fund			58,500
Comprehensive transportation fund			238,200
Economic development fund			39,400
Michigan transportation fund			311,200
State aeronautics fund			185,700
State trunkline fund			40,946,000
State general fund/general purpose		$	0
Sec. 106. TRANSPORTATION PLANNING
Full-time equated classified positions	144.0
Planning services--FTEs	144.0	$	45,371,600
Grants to regional planning councils			488,800
GROSS APPROPRIATION		$	45,860,400
Appropriated from:
Federal aid - transportation programs			26,000,000
Comprehensive transportation fund			359,900
Michigan transportation fund			11,338,200
State aeronautics fund			30,800
State trunkline fund			8,131,500
State general fund/general purpose		$	0
Sec. 107. DESIGN AND ENGINEERING SERVICES
Full-time equated classified positions	1,684.3
Business services--FTEs	51.8	$	11,846,500
Program development and delivery--FTEs	1,061.5		135,554,900
System operations management--FTEs	571.0		119,754,200
GROSS APPROPRIATION		$	267,155,600
Appropriated from:
Federal aid - transportation programs			23,529,800

Comprehensive transportation fund			187,100
Michigan transportation fund			19,624,800
State trunkline fund			223,813,900
State general fund/general purpose		$	0
Sec. 108. HIGHWAY MAINTENANCE
Full-time equated classified positions	908.7
State trunkline operations--FTEs	908.7	$	503,716,400
GROSS APPROPRIATION		$	503,716,400
Appropriated from:
State trunkline fund			503,716,400
State general fund/general purpose		$	0
Sec. 109. ROAD AND BRIDGE PROGRAMS
Cities and villages		$	743,830,200
County road commissions			1,334,117,400
Grants to local programs			33,000,000
Local agency wetland mitigation bank fund			2,000,000
Local bridge program			26,417,100
Local federal aid and road and bridge construction			428,999,800
Movable bridge fund			6,309,000
Rail grade crossing			3,000,000
Rail grade crossing - surface improvements			3,000,000
State trunkline federal aid and road and bridge construction			1,671,495,000
GROSS APPROPRIATION		$	4,252,168,500
Appropriated from:
Federal aid - transportation programs			1,744,266,200
Local funds			30,003,500

Private funds			10,000,000
Blue Water Bridge fund			32,757,700
Local bridge fund			26,417,100
Michigan transportation fund			2,125,256,600
State trunkline fund			283,467,400
State general fund/general purpose		$	0
Sec. 110. BLUE WATER BRIDGE
Full-time equated classified positions	47.0
Blue Water Bridge operations--FTEs	47.0	$	7,908,600
GROSS APPROPRIATION		$	7,908,600
Appropriated from:
Blue Water Bridge fund			7,908,600
State general fund/general purpose		$	0
Sec. 111. TRANSPORTATION ECONOMIC DEVELOPMENT
Forest roads		$	5,000,000
Rural county primary			10,547,600
Rural county urban system			2,500,000
Targeted industries/economic development			24,595,300
Urban county congestion			10,547,600
GROSS APPROPRIATION		$	53,190,500
Appropriated from:
Economic development fund			53,190,500
State general fund/general purpose		$	0
Sec. 112. AERONAUTICS SERVICES
Full-time equated classified positions	48.0
Air service program		$	50,000
Aviation services--FTEs	48.0		7,848,300
GROSS APPROPRIATION		$	7,898,300

Appropriated from:
State aeronautics fund			7,898,300
State general fund/general purpose		$	0
Sec. 113. PUBLIC TRANSPORTATION SERVICES
Full-time equated classified positions	46.0
Passenger transportation services--FTEs	46.0	$	7,410,900
GROSS APPROPRIATION		$	7,410,900
Appropriated from:
Federal aid - transportation programs			2,000,000
Comprehensive transportation fund			5,410,900
State general fund/general purpose		$	0
Sec. 114. LOCAL BUS TRANSIT
Local bus operating		$	241,750,000
Nonurban operation/capital			41,123,000
GROSS APPROPRIATION		$	282,873,000
Appropriated from:
Federal aid - transportation programs			39,123,000
Local funds			2,000,000
Comprehensive transportation fund			226,750,000
Community infrastructure fund			15,000,000
State general fund/general purpose		$	0
Sec. 115. INTERCITY PASSENGER
Full-time equated classified positions	41.0
Detroit/Wayne County Port Authority		$	600,000
Freight property management			1,300,000
Intercity services			9,759,000
Marine passenger service			20,559,100
Office of rail--FTEs	41.0		7,485,900

Rail operations and infrastructure		147,688,500
GROSS APPROPRIATION	$	187,392,500
Appropriated from:
Federal aid - transportation programs		54,362,700
Local funds		760,000
Private funds		2,800,000
Comprehensive transportation fund		120,376,700
Intercity bus equipment fund		45,400
Michigan transportation fund		2,211,800
Rail freight fund		6,000,000
State trunkline fund		835,900
State general fund/general purpose	$	0
Sec. 116. PUBLIC TRANSPORTATION DEVELOPMENT
Municipal credit program	$	2,000,000
Service initiatives		20,992,300
Specialized services		30,342,700
Transit capital		250,724,200
Van pooling		400,000
GROSS APPROPRIATION	$	304,459,200
Appropriated from:
Federal aid - transportation programs		169,803,300
Local funds		37,185,000
Private funds		4,000,000
Comprehensive transportation fund		93,470,900
State general fund/general purpose	$	0
Sec. 117. CAPITAL OUTLAY
(1) BUILDINGS AND FACILITIES
Salt storage buildings and containment control	$	3,000,000

Special maintenance, remodeling, and additions		5,000,500
GROSS APPROPRIATION	$	8,000,500
Appropriated from:
State trunkline fund		8,000,500
State general fund/general purpose	$	0
(2) AIRPORT IMPROVEMENT PROGRAMS
Airport safety, protection, and improvement program	$	185,845,000
Detroit Metropolitan Wayne County Airport		7,020,000
IIJA airport infrastructure grants		115,000,000
GROSS APPROPRIATION	$	307,865,000
Appropriated from:
Federal aid - transportation programs		270,000,000
Local funds		17,500,000
Private funds		2,000,000
Qualified airport fund		7,020,000
State aeronautics fund		11,345,000
State general fund/general purpose	$	0
Sec. 118. ONE-TIME APPROPRIATIONS
Road usage charge study	$	7,650,000
Match every federal dollar		90,000,000
Local infrastructure projects		50,000,000
Grants to local businesses and municipalities		25,000,000
Wrong way driver deterrence		2,000,000
GROSS APPROPRIATION	$	174,650,000
Appropriated from:
Community infrastructure fund		165,000,000
Michigan transportation fund		7,650,000

State general fund/general purpose

2,000,000

part 2

provisions concerning appropriations

for fiscal year 2025-2026

general sections

Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2026, total state spending under part 1 from state sources is $4,467,316,700.00 and state spending under part 1 from state sources to be paid to local units of government is $2,547,188,300.00. The following itemized statement 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		743,830,200
County road commissions		1,334,117,400
Grants to local programs		33,000,000
Local bridge program		26,417,100
Local agency wetland mitigation		2,000,000
Movable bridge		3,154,500
Rail grade crossing		1,500,000
Rail grade surface crossing improvements		3,000,000
Forest roads		5,000,000
Rural county primary		10,547,600
Rural county urban system		2,500,000
Target industries/economic redevelopment		15,249,100

Urban county congestion		10,547,600
Air service program		50,000
Local bus operating		241,750,000
Detroit/Wayne County Port Authority		600,000
Marine passenger service		2,000,000
Municipal credit program		2,000,000
Service initiatives		7,288,300
Specialized services		13,000,000
Transit capital		70,782,700
Airport safety, protection, and improvement program		11,345,000
Detroit Metropolitan Wayne County Airport		7,020,000
Total payments to local units of government	$	2,547,188,300

Sec. 202. The appropriations 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) "FTE" means full-time equated.

(e) "IDG" means interdepartmental grant.

(f) "IIJA" means the infrastructure investment and jobs act, 2021, Public Law 117-58.

(g) "MTF" means Michigan transportation fund.

(h) "SAF" means state aeronautics fund.

(i) "Standard report recipients" means the senate and house appropriations subcommittees on transportation, the senate and house fiscal agencies, the senate and house policy offices, and the

state budget office.

(j) "STF" means state trunkline fund.

Sec. 204. The department or agency shall use the internet to fulfill the reporting requirements of this part. This requirement includes transmitting reports to the standard report recipients and any other required recipients by email and posting the reports on an internet site.

Sec. 205. To the extent permissible under section 261 of the management and budget act, 1984 PA 431, MCL 18.1261, all of the following apply to the expenditure of funds appropriated in part 1:

(a) The funds must 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.

(b) Preference must be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality.

(c) Preference must 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.

(d) Preference must be given to goods or services, or both, that are manufactured in facilities that employ union members.

Sec. 206. The department shall not take disciplinary action against an employee of the department for communicating with a member of the legislature or legislative staff, unless the communication is prohibited by law and the department is exercising its authority as provided by law.

Sec. 207. Consistent with section 217 of the management and

budget act, 1984 PA 431, MCL 18.1217, the departments shall prepare a report on out-of-state travel expenses not later than January 1. The report must list all travel by classified and unclassified employees outside this state in the previous fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The department shall submit the report to the standard report recipients and to the senate and house appropriations committees. The report must include all of the following information:

(a) The dates of each travel occurrence.

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

Sec. 208. The department shall not use funds appropriated in part 1 to hire a person to provide legal services that are the responsibility of the attorney general. This section does not apply to legal services for bonding activities or to outside legal services that the attorney general authorizes.

Sec. 209. Not later than December 15, the state budget office shall prepare and submit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the previous fiscal year. The report must summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The state budget office shall submit the report to the standard report recipients and to the chairpersons of the senate and house of representatives appropriations committees.

Sec. 210. (1) In addition to the funds appropriated in part 1,

there is appropriated an amount not to exceed $500,000,000.00 for federal contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $40,000,000.00 for state restricted contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under 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. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under 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 $11,000,000.00 for private contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(5) In addition to the funds appropriated in part 1, there is appropriated an amount of $3,000,000,000.00 for restricted contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. Funds

appropriated or transferred under this subsection are available to implement a comprehensive infrastructure plan consistent with all of the following: 

(a) Includes sustainable, long-term funding for local roads and addresses state trunkline needs.

(b) Includes a revised road funding distribution formula that prioritizes and accounts for at least the lane miles of local roads, prioritizes local roads that are in poor condition and have significant traffic volume, and recognizes the unique conditions of different regions of this state, including, but not limited to, the differences in construction costs by region and the impacts of the freeze-thaw cycle.

(d) Provides funding to enhance both passenger and freight rail services across the state.

(e) Addresses funding for other critical infrastructure, including local drinking and wastewater infrastructure needs, local bridge repairs, non-motorized infrastructure, and emergency and disaster response needs.

Sec. 211. A department or agency 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 for each department or agency:

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

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

payment description.

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

(e) Job specifications and wage rates.

Sec. 212. Not later than 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the previous 2 fiscal years. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 214. (1) Funds appropriated in part 1 must not be used to restrict or impede a marginalized community's access to government resources, programs, or facilities.

(2) From the funds appropriated in part 1, local governments shall report any action or policy that attempts to restrict or interfere with the duties of a local health officer.

Sec. 215. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of each department or agency receiving appropriations in part 1 shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department or agency contracts to subcontract with certified geographically disadvantaged business enterprises for services, supplies, or both. As used in this section, "geographically disadvantaged business enterprises" means that term as defined in Executive Directive No. 2023-1.

Sec. 216. On a quarterly basis, the department shall report on the number of FTE positions in pay status by civil service classification, including a comparison by line item of the number of FTE positions authorized from funds appropriated in part 1 to the actual number of FTE positions employed by the department at the end of the reporting period. The report must be submitted to the senate and house appropriations committees and to the standard report recipients.

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

Sec. 220. Not later than April 1, the department shall report on each specific policy change made to implement a public act affecting the department that took effect during the previous calendar year. The department shall submit the report to the standard report recipients, to the senate and house appropriations committees, and to the joint committee on administrative rules.

Sec. 222. To the extent possible, the department shall not expend appropriations under part 1 until all existing authorized work project funds available for the same purposes are exhausted.

Sec. 223. The state budget director shall take steps to ensure that all state fiscal recovery funds allocated to this state under the American rescue plan act of 2021, Public Law 117-2, are expended by December 31, 2026, as required by law. A department or agency receiving an appropriation under this part or part 1 must notify the standard report recipients if an appropriation of funds

described under this section is projected to lapse.

Sec. 230. (1) General fund appropriations in part 1 shall not be expended for items if federal funding or private grant funding is available for the same expenditures.

(2) If the department is required to make a reduction in expenditures under section 395(1) or (2) of the management and budget act, 1984 PA 431, MCL 18.1395, for any appropriation under this part or part 1, the department must notify the standard report recipients not later than 10 days after the reduction. The notification must include, but not be limited to, the following:

(a) A description of the fund source that is insufficient to support the expenditures being reduced and the amount of the reduction.

(b) A description of the cause for the reduction, if any such cause is known.

Sec. 231. (1) Within 10 days after the effective date of this act, the department must provide a report to the standard report recipients containing the following information:

(a) A list of any sections in this act that the department determines to be unenforceable, with a detailed legal rationale for those determinations, as applicable.

(b) If a determination under subdivision (a) would affect the operations of a program or programs within the department, the department must report the estimated difference in cost between the policy outlined in the section determined to be unenforceable and the policy the department intends to pursue.

(2) The department may coordinate with the executive office of

the governor or other state departments or agencies to compile a statewide report for any departments or agencies required to submit a report substantially similar to the report described under subsection (1).

Sec. 232. The department must provide a quarterly report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:

(a) Affect the operations of the department.

(b) Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.

(c) Affect regulations that currently protect the public to the extent that the regulations affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.

(d) Create a regulatory gap that could negatively impact the public.

Sec. 250. (1) For any grant program or project funded in part 1 intended for a single recipient organization or unit of local government, the grant program or project is for a public purpose and the department shall follow procurement statutes of this state, including any bidding requirements, unless the department can fully validate, through information detailed in this part or public supporting documents, both of the following:

(a) The specific organization or unit of local government that will receive or administer the funds.

(b) How the funds will be administered and expended.

(2) To be eligible to receive a grant described in subsection (1), both of the following must occur:

(a) A recipient must submit the application under subsection (3) not later than 60 days after the effective date of this act.

(b) A recipient must be 1 of the following:

(i) A unit of local government, as that term is defined in section 115 of the management and budget act, 1984 PA 431, MCL 18.1115.

(ii) An institution of higher education.

(iii) A state agency, as that term is defined in section 115 of the management and budget act, 1984 PA 431, MCL 18.1115.

(iv) An entity registered with the department of licensing and regulatory affairs or the department of attorney general that has been in existence for at least the 12 months preceding the effective date of this act.

(v) Another entity that can demonstrate, through state or federal tax filings or other state or federal government records, that it has been in existence for at least the 12 months preceding the effective date of this act.

(3) Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall work with the state budget office to perform at least all of the following activities to administer the grants described in subsection (1):

(a) Develop a standard application process using the electronic submission portal developed by the state budget office, grantee reporting requirements, and any other necessary documentation, including sponsorship information as specified under subsection (4). If the electronic submission portal identified in this subdivision is not fully functional by 60 days after the effective date of this act, the state budget office shall ensure that the standard application process and form are available

promptly and paper submission is acceptable. The state budget office shall promptly submit application material received to the department for departmental review.

(b) Establish a process to review, complete, and execute a grant agreement with a grant recipient. The department shall not execute a grant agreement unless all necessary documentation has been submitted and reviewed.

(c) Verify to the extent possible that a grant recipient will use funds for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.

(d) Review and verify all necessary information to ensure the grant recipient is reasonably able to execute the grant agreement, perform its fiduciary duty, and comply with all applicable state and federal statutes. The department may deduct the cost of background checks and any other efforts performed as part of this verification from the amount of the designated grant award.

(e) Establish a standard timeline to review all documents submitted by grant recipients and provide a response within 45 business days stating whether submitted documents by a grant recipient are sufficient or in need of additional information. If additional information is needed, the 60-day deadline in subsection (2) is considered to have been met if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(f) Make an initial disbursement of up to 50% of the grant to the grant recipient not later than 60 days after a grant agreement

has been executed. Disbursements must be consistent with part II, chapter 10, section 200 of the Financial Management Guide.

(g) Disburse the funds remaining after the initial disbursement under subdivision (f) per the grant disbursement schedule in the executed grant agreement on a reimbursement basis after the grantee has provided sufficient documentation, as determined by the department, to verify that expenditures were made in accordance with the project purpose.

(4) The process for the identification and sponsorship of a grant described in subsection (1) is as follows:

(a) Not later than the effective date of this act, the state budget office shall provide an initial list of grants that require legislative sponsorship to the legislature and shall make public an initial list of grants that likely will be sponsored by the department or by the state budget office.

(b) A sponsor of a grant described in subsection (1) must be a legislator, the department, or the state budget office.

(c) A legislative sponsor must be identified through a letter submitted by that legislator's office to the department and state budget director containing the name of the grant recipient, the intended amount of the grant, a certification from that legislator that the grant is for a public purpose, and specific citation of the section and subsection of the public act that authorizes the grant, as applicable.

(d) Within 10 business days after the effective date of this act, the senate and house of representatives shall compile an initial list of legislative grant sponsors for their respective chambers and submit those compiled lists to the state budget office and the department, and the state budget office shall identify

department- or state budget office-sponsored grants. The state budget director may grant an extension of this deadline of not more than 30 days on a case-by-case basis. The state budget office shall make the compiled lists public within 14 business days after the effective date of this act.

(e) Not later than 60 days after the effective date of this act, the state budget office shall publish a final list of grants requiring sponsorship. If a legislative sponsor is not identified within 60 days after the effective date of this act, the department shall do 1 of the following:

(i) Identify the department or the state budget office as the sponsor.

(ii) Decline to execute the grant agreement and lapse the associated funds at the end of the fiscal year.

(f) At any point during the fiscal year, legislative grant sponsors may be added to a grant request.

(5) An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:

(a) All necessary identifying information for the grant recipient, including any tax and financial information for the department to administer funds under this section.

(b) A description of the project for which the grant funds will be expended, including tentative timelines and the estimated budget. The department shall not reimburse expenditures that are outside of the project purpose, as stated in the executed grant agreement, from appropriations in part 1. The grantee shall return to the treasury any interest in excess of $1,000.00 earned on the grant funds while unexpended and in possession of the grantee.

(c) Unless otherwise specified in department policy, a requirement that funds appropriated for the grants described in subsection (1) may be used only for expenditures that occur on or after the effective date of this act.

(d) A requirement for reporting by the grant recipient to the department and the legislative sponsor that provides the status of the project and an accounting of all funds expended by the grant recipient, as determined by the department.

(e) A claw-back provision that allows the department of treasury to recoup or otherwise collect any funds that are declined, unspent, or otherwise misused.

(f) The signed legislative sponsorship letter required under subsection (4), incorporated into the grant agreement and included as an appendix or attachment.

(g) If a grant recipient has provided information sufficient to execute a grant agreement, the state budget office shall promptly transmit that information to the department for the department's review of the grant application. If a grant recipient has provided information sufficient to execute a grant agreement within 60 days after the effective date of this act, but the grant application needs technical fixes or additional legislative action, as identified by the state budget office, the 60-day deadline in this subdivision is considered to have been met, if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(6) If appropriate to improve the administration or oversight

of a grant described in subsection (1), the department may adopt a memorandum of understanding with another state department to perform the required duties under this section.

(7) A grant recipient shall respond to all reasonable information requests from the department related to grant expenditures and retain grant records for not less than 7 years, and the grant may be subject to monitoring, site visits, and audits as determined by the department. The grant agreement required under this section must include signed assurance by the chief executive officer or other executive officer of the grant recipient that the requirements of this subsection will be met.

(8) The grant recipient shall expend all funds awarded and complete all projects not later than September 30, 2030. If at that time any unexpended funds remain, the grant recipient shall return those funds to the state treasury.

(9) Any funds that are granted to a state department are appropriated in that department for the purpose of the intended grant.

(10) The state budget director may, on a case-by-case basis, extend the deadline in subsection (8) on request by a grant recipient if a sponsor has been identified for the grant. The state budget director shall notify the chairs of the senate and house of representatives appropriations committees not later than 5 days after an extension is granted.

(11) By March 1 of the current fiscal year, the state budget office shall post a report in a publicly accessible location on its website. The report must list the grant recipient, project purpose, and location of the project for each grant described in subsection (1), the status of funds allocated and disbursed under the grant

agreement, and the legislative sponsor, if applicable. After March 1, the state budget office shall update the report monthly and shall post the updated report each month. The state budget office shall include in the report the most comprehensive information the office has available at the time of posting for grants awarded. The state budget office may compile the information required in this report across all departments. The department shall assist the state budget office with the compilation of the report required under this subsection.

(12) On request, beginning 75 days after the effective date of this act, the state budget office shall release information received for grant applications.

(13) As applicable, the legislative sponsor of a grant described in subsection (1) shall not sponsor a grant, or ask another legislator to sponsor a grant, if there is a conflict of interest related to the grant recipient.

(14) If the department reasonably determines that the funds allocated for an executed grant agreement under this section were misused or that use of the funds was misrepresented by the grant recipient, the department shall not award any additional funds under the executed grant agreement and shall refer the grant for review following internal audit protocols.

DEPARTMENTAL 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 on request, unless otherwise stipulated by law. All permit fees are nonrefundable application fees and must be credited to the

appropriate fund to recover the direct and indirect costs of receiving, reviewing, and processing the requests.

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, the department shall keep that bid documentation confidential and shall not disclose that bid documentation other than to a department representative without the contractor's written consent. The department may disclose the bid documentation if necessary to address or defend a claim by a contractor.

Sec. 305. (1) The department shall consult with the Michigan state housing development authority interagency council on homelessness or the Michigan homeless policy council to assess current practices and policies regarding interactions with homeless populations generally and for situations of clearing homeless encampments from public rights-of-way. The assessment must include all of the following at a minimum:

(a) Additional costs to the department.

(b) The impact on operations.

(d) The impact on homeless individuals.

(e) The impact on addressing the overall rate of homelessness.

(f) The effectiveness of strategy in reducing the negative impacts of homeless encampments on rights-of-way.

(2) The department shall undertake a hazardous materials cleanup of homeless sites on the department's property.

(3) The department shall coordinate with local law enforcement, social assistance organizations, homeless assistance agencies, and continuum of care agencies.

(4) Before clearing a homeless encampment site, the department shall do both of the following:

(a) Communicate and post information of the date that the site will be cleared, including posting that information at the site.

(b) Create a plan for clearing the site of possessions and reunifying the possessions with their owners.

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 must be expended from transportation funds pursuant to annual contracts between the department and those other state departments. The contracts must be executed before the expenditure or obligation of those funds. The contracts must 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 annual comprehensive 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.

Sec. 307. Before March 1, the department shall 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. 308. Funds appropriated under part 1 or this part must not be used for construction, repair, or remodeling of a building or structure owned or leased by this state unless the construction, repair, or remodeling is performed by contractors that participate in a registered apprenticeship program for the training of their apprentices, as that term is defined in 29 USC 50c, that is certified as approved by the United States Secretary of Labor as described in 29 USC 50c.

Sec. 309. Notwithstanding any other law, a state contract for a pavement marking project or for the purchase of materials for a pavement marking project must include in the contract a requirement that any yellow paint product procured must have organic yellow pigments 65 (HTS 3204.17.9086), 74 (HTS 3204.17.9055), or both permanently incorporated in the material, and that the pigment must be manufactured in this state according to the rules of origin under the United States-Mexico-Canada agreement, Public Law 116-113.

Sec. 310. The department shall post in a timely manner copies of the agenda, approved minutes, and audio recording of state transportation commission meetings.

Sec. 311. (1) The department shall prepare a report on all of

the following:

(a) CRRSAA ? highway infrastructure ? local bridge bundling initiative established in section 113(2) of article 14 of 2021 PA 87.

(b) Local bridge bundling initiative established in section 118 of article 15 of 2023 PA 119.

(2) The report must identify the status of bridge projects selected, funds expended under the program, and funds remaining.

(3) The report shall be submitted to the standard report recipients on or before March 30, 2026.

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

(3) The department shall prepare a report on the status of the

state infrastructure bank and submit the report to the standard report recipients on or before December 31, 2025. The report must include all of the following:

(a) The balance in the state infrastructure bank on September 30, 2025, 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 originating from federal sources and the amounts originating from nonfederal sources.

Sec. 314. (1) The MI contracting opportunity loan fund is created within the state treasury.

(2) Funds deposited into the MI contracting opportunity loan fund originally created in section 1003 of article 15 of 2024 PA 121 or money received by this state as repayment of loans or interest earned on loan funds is appropriated and shall be available for future loans.

(3) At the close of the fiscal year, any unencumbered funds remaining in the fund shall be carried forward into the succeeding fiscal year.

Sec. 315. The department shall use any additional funds in the moveable bridge fund to cover other costs for any required local federal bridge load analysis, inspection, or other local federal mandate.

Sec. 384. (1) Except as otherwise provided in subsection (2), the department shall not obligate this 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 this 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 this state to expend any state transportation revenue. An expenditure for staff resources used in connection with project activities that is subject to full and prompt reimbursement from Canada is not 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 standard report recipients, the speaker of the house of representatives, the house of representatives minority leader, the senate majority leader, and the senate minority leader on all of the following:

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

(b) All reimbursements made by Canada under section 384(1) of this part to this 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 department shall submit the initial report required

under subsection (1) on or before December 1. The initial report must cover the prior fiscal year.

Sec. 389. (1) Within 30 days after 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.

(2) 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 $10,000,000.00 or more.

Sec. 398. The department shall continue to work to eliminate fatalities and serious injuries on the state 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.

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 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 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 must 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. 604. At the close of the fiscal year, any unencumbered and unexpended balance in the state trunkline fund remains in the state trunkline fund and carries forward and is appropriated for federal aid road and bridge programs for projects contained in the annual state transportation program.

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 must 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 must 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, must 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 remain in the fund and are 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 must 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 remain in the fund and are carried forward into the succeeding fiscal year.

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 report shall also include a listing of all active rail related federal grants. The initial report shall be submitted to the standard report recipients on or before March 1. The department also shall update and resubmit a final report on or before September 30.

Sec. 707. (1) Before March 1, 2026, the department shall provide to the legislature, the state budget office, and the house and senate fiscal agencies its rail strategic plan. The strategic plan must include, but is not limited to, a rolling 5-year rail plan and a 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 must include, but is not limited to, all of the following:

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

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

(3) The period of the rolling 5-year rail plan must include the fiscal year ending September 30, 2026 and the immediately following 4 fiscal years.

(4) The summary of the department's obligations for programs funded under the appropriation in part 1 for rail operations and infrastructure must 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.

(5) From the funds appropriated in part 1 for rail operation and infrastructure, not less than $20,000,000.00 must be allocated for the support of rail-related economic development projects and rail freight system preservation projects.

Sec. 735. For the fiscal year ending September 30, 2026, the appropriation to a street railway pursuant to section 10e(22) of 1951 PA 51, MCL 247.660e, is $0.

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, lapses to the state aeronautics fund and may 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 must 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 must not be allocated until local money is allocated. State money for any 1 project must 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 are 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 ONLY APPROPRIATIONS

Sec. 1001. (1) Funds appropriated in part 1 for local infrastructure projects shall be expended for infrastructure projects and are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to fund local infrastructure projects.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2030.

(2) The part 1 appropriation for critical infrastructure projects must be expended for the following:

(a) $1,500,000.00 for sidewalk installation and repair, to a township with a population between 49,000 and 50,000 according to the latest federal decennial census.

(b) $1,900,000.00 for bridge replacement, to Cass Lake

Community Association in a township with a population between 65,000 and 66,000 according to the latest federal decennial census.

(c) $2,000,000.00 for alleyway improvements, to a city with a population between 28,400 and 28,450 according to the latest federal decennial census.

(d) $3,000,000.00 to the department for bus lanes along Washtenaw Avenue, near US-23 in Washtenaw County.

(e) $5,000,000.00 for reconstruction of a road, to a county with a population between 800,000 and 900,000 according to the latest federal decennial census.

(f) $3,000,000.00 for road repair and replacement, to a city with a population between 40,000 and 41,000 according to the latest federal decennial census.

(g) $300,000.00 for a tunnel turning lane, to a township with a population between 4,100 and 4,110 according to the latest federal decennial census located in a county with a population between 26,000 and 27,000 according to the latest federal decennial census.

(h) $1,500,000.00 for a park bridge replacement, to a township with a population between 3,763 and 3,767 according to the latest federal decennial census.

(i) $1,500,000.00 for a bikeway project, to a city with a population between 190,000 and 200,000 according to the latest federal decennial census.

(j) $2,000,000.00 for a pedestrian bridge, to a city with a population between 54,000 and 55,000 according to the latest federal decennial census.

(k) $800,000.00 for road reconstruction, to a city with a population between 10,140 and 10,150 according to the latest

federal decennial census.

(l) $1,200,000.00 for a pedestrian crossing, to a township with a population between 45,000 and 46,000 according to the latest federal decennial census.

(m) $800,000.00 for a road project, to a county with a population between 66,600 and 66,700 according to the latest federal decennial census.

(n) $500,000.00 for a bridge replacement, to a county with a population between 12,000 and 12,100 according to the latest federal decennial census.

(o) $13,349,800.00 is appropriated for a local disaster relief fund. The local disaster relief fund shall provide funding for a local disaster relief program. The local disaster relief program shall provide grants to local road agencies in response to natural disasters and other emergency events that affect transportation infrastructure or operations.

(p) $5,000,000.00 to the department, for a road project in Wayne County.

(q) $100.00 to the department, to restore EUPTA evening ferry service to Neebish Island.

(r) $2,000,000.00 to the rail grade crossing ? surface improvements line item.

(s) $4,000,000.00 to the local grade separation fund created in section 11i of 1951 PA 51, MCL 247.661i.

(t) $100.00 to the department to create a database of this state's road system based on lane miles, including city, village, county, and state roads.

(u) $650,000.00 for sidewalk repair, to a township with a population between 3,763 and 3,767 according to the latest federal

decennial census.

Sec. 1002. Funds appropriated in part 1 for match every federal dollar shall be used to provide the funding necessary to ensure the department secures all federal funding made available to the department from the Federal Highway Administration under the infrastructure investment and jobs act, Public Law 117-58.

Sec. 1003. (1) From the funds appropriated in part 1 for grants to local business and municipalities, the department shall coordinate with the department of treasury to implement a grant program for businesses and municipalities directly impacted by a state transportation project. Consistent with the requirements in this section, the department shall develop separate applications and grant criteria for both eligible businesses and municipalities and publish online.

(2) Not less than $12,000,000.00 from part 1 for grants to local business and municipalities shall be utilized to award grants to eligible businesses. The department may retain up to 3% of total funds in part 1 for administration costs.

(3) Grants for eligible businesses are subject to all of the following conditions:

(a) Businesses must be impacted by a state transportation project that has exceeded its scheduled completion date.

(b) A business must have no more than 50 employees.

(d) Eligible businesses must demonstrate a monthly loss in revenue due to a state transportation project. Individual grant awards must be equal to the revenue lost or $15,000.00, whichever is less.

(e) Any other condition considered appropriate by the department.

(4) Grants for eligible municipalities are subject to all of the following conditions:

(a) A state transportation project must be located within or adjacent to an eligible municipality.

(b) Traffic has been detoured to local roads within an eligible municipality or the applicant can demonstrate that traffic has substantially increased on local roads due to a state transportation project.

(c) Grants must be awarded based on additional grant criteria developed by the department to prioritize grants to communities with the most significant increase in traffic and damage to local roads.

(d) Individual grant awards to municipalities must not exceed $1,000,000.00 and must be utilized by the municipality for local road repairs.

(e) Any other condition considered appropriate by the department.

(5) Not later than March 1, the department shall provide a report to the standard recipients on the implementation of these grant programs, including at least the following:

(a) Grants awarded in the most recent fiscal year, including the number of grants awarded, the amount of each grant, and the recipients.

(b) Identification of the state transportation projects associated with each grant award.

(6) The unexpended funds appropriated in part 1 for grants to local business and municipalities are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to award grants to businesses and municipalities impacted by state transportation projects.

(b) The project will be accomplished by utilizing state employees, the Michigan economic development corporation, or contracts.

(d) The tentative completion date is September 30, 2030.

Sec. 1004. Funds appropriated in part 1 for wrong way driver deterrence shall be used to provide funding for the deployment of additional wrong way driver detection and driver alertness technology.

Sec. 1005. (1) No later than December 1, 2025, the department shall begin a road usage charge study and pilot (hereafter referenced as ?study? as described in this section. The total cost of the road usage charge study must not exceed $7,650,000.00.

(2) No later than 60 days after the effective date of this act, the department must create a road usage charge technical advisory committee and announce their first meeting date. All of the following apply to the technical advisory committee:

(a) Meetings of the technical advisory committee must be held in compliance with the open meetings act, 1976 PA 267, MCL 15.261

to 15.275.

(b) The purpose of the technical advisory committee is to guide the development and evaluation of a road usage charge study to assess the potential and positive and negative findings for mileage-based revenue collection for this state's roads and highways as an alternative to the fuel tax system.

(i) Eleven members appointed by the director of the department. At least 1 member of the technical advisory committee appointed by the director must be a local road agency representative. In selecting the members of the technical advisory committee, the director shall consider individuals who are representatives of the telecommunications industry, highway user groups, the data security and privacy industry, privacy rights advocacy organizations, regional transportation agencies, national research and policymaking bodies, including, but not limited to, the Transportation Research Board and the American Association of State Highway and Transportation Officials, and other relevant stakeholders as determined by the director.

(ii) Two members appointed by the speaker of the house of representatives.

(iii) Two members appointed by the senate majority leader.

(iv) Two members appointed by the house minority leader.

(v) Two members appointed by the senate minority leader.

(d) The technical advisory committee must study road usage charge alternatives to the fuel tax. The technical advisory committee must gather public comment on issues and concerns related to the road usage charge study and must make recommendations to the

director on the design of a road usage charge study to test alternative road usage charge approaches. The technical advisory committee may also make recommendations on the criteria to be used to evaluate the road usage charge study.

(e) In studying alternatives to the current fuel tax system and developing recommendations on the design of a road usage charge study to test alternative road usage charge approaches pursuant to subdivision (d), the technical advisory committee must take all of the following into consideration:

(i) The availability, adaptability, reliability, and security of methods that might be used in recording and reporting highway use.

(ii) The necessity of protecting all personally identifiable information used in reporting highway use.

(iii) The ease and cost of recording and reporting highway use.

(iv) The ease and cost of administering the collection of taxes and fees as an alternative to the current system of taxing highway use through motor vehicle fuel taxes.

(v) Effective methods of maintaining compliance.

(vi) The ease of reidentifying location data, even when personally identifiable information has been removed from the data.

(vii) Increased privacy concerns when location data is used in conjunction with other technologies.

(viii) Public and private agency access, including law enforcement, to data collected and stored for purposes of the road usage charge to ensure individual privacy rights are protected pursuant to state law.

(f) The technical advisory committee shall consult with highway users and transportation stakeholders, including

representatives of vehicle users, vehicle manufacturers, and fuel distributors, as part of its duties under subdivision (e).

(3) Based on the recommendations of the technical advisory committee, the department shall implement a road usage charge study to identify and evaluate issues related to the potential implementation of a road usage charge in this state . The road user charge study shall begin no later than June 1, 2026, subject to all of the following:

(a) The department must consult with the secretary of state to design a process for collecting a mileage-based user fee. The state must contract with at least 1 vendor for at least 1 of the collection options.

(b) Participation in the road usage charge study must be voluntary.

(c) A participant in the road usage charge study must be charged a mileage-based user fee and receive a refund for any motor fuel taxes or vehicle registration fees the participant paid to operate the participating vehicle during the road usage charge study.

(d) At a minimum, the road usage charge study must accomplish all of the following:

(i) Analyze alternative means of collecting road usage data, including at least 1 alternative that does not rely on electronic vehicle location data.

(ii) Collect a minimum amount of personal information, including location information, necessary to implement the road usage charge study.

(iii) Ensure that processes for collecting, managing, storing, transmitting, and destroying data are in place to protect the

integrity of the data and safeguard the privacy of drivers.

(e) The department shall not disclose, distribute, make available, sell, access, or otherwise provide for another purpose personal information or data collected through the road usage charge study to any private entity or individual unless authorized by a court order, as part of a civil case, by a subpoena issued on behalf of a defendant in a criminal case, by a search warrant, or in aggregate form with all personal information removed for the purposes of academic research.

(4) It is the intent of the legislature that the road usage charge study be completed by May 31, 2027 and the department must prepare and submit a report by that date of its findings based on the results of the road usage charge study to the governor, the senate and house appropriations committees, the senate and house subcommittees on transportation, the senate and house fiscal agencies, the technical advisory committee, and the public. The report must also be available on the department's website. The report must include, but not be limited to, a discussion of all of the following issues:

(a) Cost.

(b) Privacy, including recommendations regarding public and private access, including law enforcement, to data collected and stored for purposes of the road usage charge to ensure individual privacy rights are protected.

(d) Feasibility.

(e) Complexity.

(f) Acceptance.

(g) Use of revenues.

(h) Security and compliance, including a discussion of processes and security measures necessary to minimize fraud and tax evasion rates.

(i) Data collection technology, including a discussion of the advantages and disadvantages of various types of data collection equipment and the privacy implications and considerations of the equipment.

(j) Potential for additional driver services.

(k) Implementation issues.

(l) Equity.

(m) Differences between urban and rural areas, if any.

(5) Funds appropriated in part 1 for road usage charge study shall be expended for a road usage charge study and are designated as a work project appropriation. Any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to fund a road usage charge study.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is May 31, 2027.

(6) As used in this section, "technical advisory committee" means the road usage charge technical advisory committee.