part 1

line-item appropriations

Sec. 101. There is appropriated for the state transportation department for the fiscal year ending September 30, 2025 from the following funds:

DEPARTMENT OF TRANSPORTATION
APPROPRIATION SUMMARY
Full-time equated unclassified positions	6.0
Full-time equated classified positions	3,222.3

GROSS APPROPRIATION	$	6,861,289,200
Interdepartmental grant revenues:
IDG for accounting service center user charges		4,316,700
Total interdepartmental grants and intradepartmental transfers		4,316,700
ADJUSTED GROSS APPROPRIATION	$	6,856,972,500
Federal revenues:
Total federal revenues		2,253,675,100
Special revenue funds:
Total local revenues		87,448,500
Total private revenues		18,800,000
Total other state restricted revenues		4,327,048,900
State general fund/general purpose	$	170,000,000
Sec. 102. DEBT SERVICE
Airport safety and protection plan	$	3,615,900
Blue Water Bridge fund		3,963,100
Economic development		1,687,400
Local bridge fund		556,500
State trunkline		330,880,800
GROSS APPROPRIATION	$	340,703,700
Appropriated from:
Special revenue funds:
Blue Water Bridge fund		3,963,100
Economic development fund		1,687,400
Local bridge fund		556,500
State aeronautics fund		3,615,900
State trunkline fund		330,880,800
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		110,900
CTF grant to department of technology, management, and budget		36,300
CTF grant to department of treasury		54,900
CTF grant to legislative auditor general		47,100
MTF grant to department of environment, Great Lakes, and energy		2,182,800
MTF grant to department of state for collection of revenue and fees		20,000,000
MTF grant to department of treasury		3,528,000
MTF grant to legislative auditor general		382,400
SAF grant to civil service commission		150,000
SAF grant to department of attorney general		194,500
SAF grant to department of technology, management, and budget		26,000
SAF grant to department of treasury		81,600
SAF grant to legislative auditor general		37,000
STF grant to civil service commission		6,321,000
STF grant to department of attorney general		2,210,100
STF grant to department of state police		12,864,700
STF grant to department of technology, management, and budget		1,173,100
STF grant to department of treasury		167,000
STF grant to legislative auditor general		888,300
GROSS APPROPRIATION	$	50,705,700

Appropriated from:
Special revenue funds:
Comprehensive transportation fund			499,200
Michigan transportation fund			26,093,200
State aeronautics fund			489,100
State trunkline fund			23,624,200
State general fund/general purpose		$	0
Sec. 104. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	6.0
Full-time equated classified positions	309.3
Unclassified salaries--FTEs	6.0	$	964,300
Asset management council			2,300,000
Business support services--FTEs	75.0		13,041,200
Commission audit and support services--FTEs	29.3		4,883,300
Economic development and enhancement programs--FTEs	11.0		1,881,000
Finance, contracts, and support services--FTEs	194.0		27,646,900
Property management			8,320,400
Worker's compensation			1,616,600
GROSS APPROPRIATION		$	60,653,700
Appropriated from:
Interdepartmental grant revenues:
IDG for accounting service center user charges			4,316,700
Special revenue funds:
Comprehensive transportation fund			1,825,200
Economic development fund			413,100
Michigan transportation fund			4,884,300

State aeronautics fund			711,500
State trunkline fund			48,502,900
State general fund/general purpose		$	0
Sec. 105. INFORMATION TECHNOLOGY
Information technology services and projects		$	42,055,400
GROSS APPROPRIATION		$	42,055,400
Appropriated from:
Federal revenues:
Federal aid – transportation programs			520,500
Special revenue funds:
Blue Water Bridge fund			58,200
Comprehensive transportation fund			236,800
Economic development fund			39,200
Michigan transportation fund			309,400
State aeronautics fund			184,600
State trunkline fund			40,706,700
State general fund/general purpose		$	0
Sec. 106. TRANSPORTATION PLANNING
Full-time equated classified positions	144.0
Planning services--FTEs	144.0	$	45,074,800
Grants to regional planning councils			488,800
GROSS APPROPRIATION		$	45,563,600
Appropriated from:
Federal revenues:
Federal aid – transportation programs			26,000,000
Special revenue funds:
Comprehensive transportation fund			355,800
Michigan transportation fund			11,169,100

State aeronautics fund			30,300
State trunkline fund			8,008,400
State general fund/general purpose		$	0
Sec. 107. DESIGN AND ENGINEERING SERVICES
Full-time equated classified positions	1,682.3
Business services--FTEs	50.8	$	11,771,700
* positions in above line			51
Program development and delivery--FTEs	1,060.5		140,627,900
* positions in above line			1,061
System operations management--FTEs	571.0	$	107,518,100
* positions in above line			571
GROSS APPROPRIATION		$	259,917,700
Appropriated from:
Federal revenues:
Federal aid – transportation programs			13,529,800
Special revenue funds:
Comprehensive transportation fund			187,100
Michigan transportation fund			18,123,900
State trunkline fund			228,076,900
State general fund/general purpose		$	0
Sec. 108. HIGHWAY MAINTENANCE
Full-time equated classified positions	909.7
State trunkline operations--FTEs	909.7	$	486,654,800
GROSS APPROPRIATION		$	486,654,800
Appropriated from:
Special revenue funds:
State trunkline fund			486,654,800
State general fund/general purpose		$	0

Sec. 109. ROAD AND BRIDGE PROGRAM
Cities and villages		$	734,069,200
County road commissions			1,316,610,100
Grants to local programs			33,000,000
Local agency wetland mitigation bank fund			2,000,000
Local bridge program			26,914,700
Local federal aid and road and bridge construction			411,168,800
Movable bridge			6,167,100
Rail grade crossing			3,000,000
Rail grade crossing - surface improvements			3,000,000
State trunkline federal aid and road and bridge construction			1,617,892,700
GROSS APPROPRIATION		$	4,153,822,600
Appropriated from:
Federal revenues:
Federal aid – transportation programs			1,682,942,500
Special revenue funds:
Local funds			30,003,500
Private funds			10,000,000
Blue Water Bridge fund			19,058,400
Local bridge fund			26,914,700
Michigan transportation fund			2,097,846,400
State trunkline fund			287,057,100
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	$	7,804,500

GROSS APPROPRIATION		$	7,804,500
Appropriated from:
Special revenue funds:
Blue Water Bridge fund			7,804,500
State general fund/general purpose		$	0
Sec. 111. TRANSPORTATION ECONOMIC DEVELOPMENT
Forest roads			5,000,000
Rural county primary			10,431,600
Rural county urban system			2,500,000
Target industries/economic redevelopment			24,363,100
Urban county congestion			10,431,600
GROSS APPROPRIATION		$	52,726,300
Appropriated from:
Special revenue funds:
Economic development fund			52,726,300
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		7,726,600
GROSS APPROPRIATION		$	7,776,600
Appropriated from:
Special revenue funds:
State aeronautics fund			7,776,600
State general fund/general purpose		$	0
Sec. 113. PUBLIC TRANSPORTATION SERVICES
Full-time equated classified positions	40.0
Passenger transportation services--FTEs	40.0	$	6,476,900

GROSS APPROPRIATION		$	6,476,900
Appropriated from:
Federal revenues:
Federal aid – transportation programs			1,200,000
Special revenue funds:
Comprehensive transportation fund			5,276,900
State general fund/general purpose		$	0
Sec. 114. LOCAL BUS TRANSIT
Local bus operating		$	229,250,000
Nonurban operating/capital			40,626,500
GROSS APPROPRIATION		$	269,876,500
Appropriated from:
Federal revenues:
Federal aid – transportation programs			38,626,500
Special revenue funds:
Local funds			2,000,000
Comprehensive transportation fund			229,250,000
State general fund/general purpose		$	0
Sec. 115. INTERCITY PASSENGER AND FREIGHT
Full-time equated classified positions	41.0
Detroit/Wayne County Port Authority		$	600,000
Freight property management			1,300,000
Intercity services			9,635,400
Marine passenger service			20,205,000
Office of rail--FTEs	41.0		7,361,700
Rail operations and infrastructure			152,189,200
GROSS APPROPRIATION		$	191,291,300
Appropriated from:

Federal revenues:
Federal aid – transportation programs		53,885,000
Special revenue funds:
Local funds		760,000
Private funds		2,800,000
Comprehensive transportation fund		124,794,900
Intercity bus equipment fund		45,400
Michigan transportation fund		2,181,600
Rail freight fund		6,000,000
State trunkline fund		824,400
State general fund/general purpose	$	0
Sec. 116. PUBLIC TRANSPORTATION DEVELOPMENT
Municipal credit program	$	2,000,000
Service initiatives		20,802,000
Specialized services		30,574,900
Transit capital		252,101,300
Van pooling		400,000
GROSS APPROPRIATION	$	305,878,200
Appropriated from:
Federal revenues:
Federal aid – transportation programs		166,970,800
Special revenue funds:
Local funds		37,185,000
Private funds		4,000,000
Comprehensive transportation fund		97,722,400
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:
Special revenue funds:
State trunkline fund			8,000,500
State general fund/general purpose		$	0
(2) AIRPORT IMPROVEMENT PROGRAMS
Airport safety, protection, and improvement program		$	183,631,200
Detroit Metropolitan Wayne County Airport			6,760,000
IIJA airport infrastructure grants			115,000,000
GROSS APPROPRIATION		$	305,391,200
Appropriated from:
Federal revenues:
Federal aid – transportation programs			270,000,000
Special revenue funds:
Local funds			17,500,000
Private funds			2,000,000
Qualified airport fund			6,760,000
State aeronautics fund			9,131,200
State general fund/general purpose		$	0
Sec. 118. ONE-TIME APPROPRIATIONS
Full-time equated classified positions	1.0
Air service/airport revitalization			6,000,000
Blue Water Bridge equipment and purchases			990,000
Federal match and priority bridge investments			150,000,000
Lake Michigan car ferry			2,000,000

Local rail grade separation program			5,000,000
Local rail grade crossing surface improvements			2,000,000
Local road and material research program			1,000,000
MI contracting opportunity--FTE	1.0		5,000,000
New technology and mobility			36,450,000
One-time local bus operating			25,000,000
School zone automated speed enforcement pilot project			2,500,000
Supplier risk and information subscription			50,000
Transit innovation grants			30,000,000
GROSS APPROPRIATION		$	265,990,000
Appropriated from:
Special revenue funds:
Blue water bridge fund			990,000
Make it in Michigan competitiveness fund			95,000,000
State general fund/general purpose		$	170,000,000

part 2

provisions concerning appropriations

for fiscal year 2024-2025

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, 2025, total state spending under part 1 from state sources is $4,497,048,900.00 and state spending under part 1 from state sources to be paid to local units of government is $2,534,248,300.00. 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		734,069,200
County road commissions		1,316,610,100
Grants to local programs		33,000,000
Local bridge program		26,914,700
Local agency wetland mitigation		2,000,000
Movable bridge		3,083,600
Rail grade crossing		1,500,000
Rail grade surface crossing improvements		3,000,000
Transportation economic development		43,438,300
Air service program		50,000
Local bus operating		229,250,000
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		75,034,100
Airport safety, protection, and improvement program		9,131,200
Detroit Metropolitan Wayne County Airport		6,760,000
One-time local bus operating		25,000,000
Total payments to local units of government	$	2,534,248,300

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

(i) "MTF" means Michigan transportation fund.

(j) "SAF" means state aeronautics fund.

(k) "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.

(l) "STF" means state trunkline fund.

Sec. 204. The department 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.

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 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 appropriations committees.

Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $200,000,000.00 for federal contingency 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.

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 for the department:

(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. 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 shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. The director shall strongly encourage firms with which the department 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. 2019-08.

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. 217. It is the intent of the legislature that the department maximize the efficiency of the state workforce and, if possible, prioritize in-person work and post its in-person, remote, or hybrid work policy on its website.

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.

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. 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. 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.

(c) Remaining funds made available for the rehabilitation and reconstruction of locally owned bridges under the federal match and priority bridge investments appropriation in part 1 and section 1001.

(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, 2025.

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, 2024. The report must include all of the following:

(a) The balance in the state infrastructure bank on September 30, 2024, 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. 383. (1) The department shall prepare a report on use of department-owned aircraft during the fiscal year ending September 30, 2024. With respect to each department-owned aircraft, the report must 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 department shall submit the report as required under section 205 no later than February 1, 2025.

(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 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 as required under section 205 and to 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, 2024. The initial report must cover the fiscal year ending September 30, 2024.

Sec. 393. The department shall promote best practices for public transportation services in this state, including, but not limited to, any of 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 that 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. 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 the state trunkline network.

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. From the funds appropriated in part 1 for state trunkline road and bridge construction, not less than $100,000,000.00 must be allocated for capital preventative maintenance treatments for pavement preservation.

FEDERAL

Sec. 402. A portion of the federal DOT-FHWA highway research, planning, and construction funds made available to this state must 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 must 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. 503a. (1) At the close of the fiscal year, funds appropriated in part 1 for the transportation economic development program lapse to the transportation economic development fund.

(2) Interest earned on transportation economic development fund balances remains in the transportation economic development fund and must be allocated to transportation economic development fund programs in accordance with 1987 PA 231, MCL 247.901 to 247.913.

(3) In addition to the funds appropriated in part 1, the department may receive and expend federal, local, or private funds for transportation economic development fund projects consistent with the purpose of 1987 PA 231, MCL 247.901 to 247.913.

(4) None of the funds statutorily dedicated to the transportation economic development fund may be diverted to other programs or funds.

Sec. 503b. (1) At the close of the fiscal year, funds appropriated in part 1 for the local bridge program carry forward and are appropriated for the purposes defined in section 10(5) of 1951 PA 51, MCL 247.660.

(2) Interest earned on local bridge fund balances remains in the local bridge fund and is appropriated for the local bridge program established in section 10(5) of 1951 PA 51, MCL 247.660.

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

department may receive and expend federal, local, or private funds for local bridge program projects consistent with section 10(5) of 1951 PA 51, MCL 247.660.

(4) None of the funds statutorily dedicated to the local bridge fund may be diverted to other programs or funds.

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. 601. (1) 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.

(2) The department shall review its warranty administration processes, procedures, and associated manuals to ensure that all of the following occur:

(a) Initial notifications of needed corrective action are sent before warranty expiration.

(b) Consistent and timely second notifications of needed corrective action are sent if contractors do not respond within 30

days of an initial notification.

(d) Daily inspector reports on all warranty segments are completed consistently.

(3) The department shall report on the review described in subsection (2) and changes resulting from the review. The department shall submit the report as required under section 205 no later than March 31, 2025.

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.

Sec. 612. The department shall provide guidelines and a report on the previous year's governing incentives and disincentives provided under contracts for state trunkline projects. The guidelines must include specific financial information concerning incentives and disincentives. The department shall submit the report to the standard report recipients no later than March 31, 2025.

Sec. 613. (1) From the funds appropriated in part 1 for state trunkline operations, $350,000.00 must be allocated to provide each department maintenance garage an industrial magnet roadway sweeper. As used in this section, "industrial magnet roadway sweeper" means an industrial-strength magnet that mounts to the front of road maintenance vehicles and is used to remove metal debris from roadway and highway shoulders.

(2) Industrial magnet roadway sweepers procured by the

department must meet the following specifications:

(a) They must fit or be capable of being retrofitted on existing maintenance vehicles.

(b) The vehicle operator must be able to turn the magnet on and off from inside the vehicle cab.

(3) The department must give preference to vendors headquartered in this state.

Sec. 614. From the funds appropriated in part 1, $5,000,000.00 must be allocated to incentivize and support the inclusion of low-impact development stormwater management practices in the design of state trunkline and local road agency construction projects. With respect to state trunkline highways, low-impact development stormwater management practices must include consideration of impacts on land and drainage within 75 feet of a state trunkline highway.

Sec. 615. From the funds appropriated in part 1, the department shall apply for grant funding under the national motor vehicle per-mile user fee pilot program under section 13002 of the infrastructure investment and jobs act, Public Law 117-58. If the grant funding is awarded, it must be used to establish a pilot program to determine the feasibility of road usage charges as a replacement for motor fuel taxes as a basis for transportation funding.

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

(2) From funds appropriated in part 1, the department shall establish the Michigan state transportation innovation council to review innovative road materials and innovative road and bridge design and construction specifications. The Michigan state transportation innovation council shall include, but is not limited to, a representative of the DOT-FHWA, an appointee chosen by the speaker of the house of representatives, and an appointee chosen by the senate majority leader.

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 includes the department's current rolling 5-year rail plan and detail regarding the department's obligations for programs funded under the appropriation in part 1 for rail operations and infrastructure. The report must 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 department shall submit the report to the standard report recipients on or before February 1, 2025.

Sec. 707. (1) Before March 1, 2025, 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, 2025 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 $15,000,000.00 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, 2025, 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. Funds appropriated in part 1 for federal match and priority bridge investments shall be used to provide 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. Any remaining funds shall support a grant program administered by the department for the rehabilitation and reconstruction of locally owned bridges and culverts.

Sec. 1002. (1) Funds appropriated in part 1 for transit innovation grants shall be expended by the department to support, but are not limited to, the following activities:

(a) Studies to support local and regional transit development.

(b) Development of transportation facilities that support connections between local, regional, national, or international public transportation services.

(2) The department shall develop program guidelines and selection criteria in consultation with the Michigan infrastructure office.

Sec. 1003. (1) Funds appropriated in part 1 for MI contracting

opportunity shall be expended by the department to support activities that enhance the development and availability of contractors or suppliers for the delivery of infrastructure programs that are socially or economically disadvantaged business concerns as defined under section 100002 of the infrastructure investment and jobs act, Public Law 117-58.

(2) A MI contracting opportunity loan fund is created in the department from funds appropriated in part 1. Funds deposited into the fund or money received by the state as repayment of loans are appropriated and shall be available for future loans. At the close of the fiscal year, any unencumbered funds remaining in the fund shall be carried forward into the succeeding fiscal year.

(3) The MI contracting opportunity loan fund may support, but is not limited to, the following department programs:

(a) Small business lending program.

(b) Mega projects small business lending program.

(4) The department shall develop MI contracting opportunity program goals, objectives, and strategies in consultation with the Michigan infrastructure office.

Sec. 1101. From the funds appropriated in part 1 for air service/airport revitalization, $6,000,000.00 is appropriated to the department for grant funding to airports in this state as follows:

(a) $2,000,000.00 for air service development, air service connectivity, and service retention.

(b) $4,000,000.00 for capital development projects at general aviation airports in this state. Capital development projects include obstruction removal, pavement rehabilitation, fuel facility construction, and terminal improvements.

Sec. 1102. From the funds appropriated in part 1 for Lake Michigan car ferry, $2,000,000.00 shall be used for decarbonization planning and implementation of clean-energy maritime technology on the S.S. Badger.

Sec. 1103. Funds appropriated in part 1 for local rail grade separation program shall be expended by the department to support a grant program for the separation of motor vehicle traffic and railroad traffic. Grant funds awarded under this program may be used by local road agencies for design and construction related to a grade separation project or a project that improves traffic at a rail crossing without a full grade separation, including, but not limited to, construction of a rail siding or spur. Projects must be selected for inclusion in the program subject to available funding and according to the following criteria:

(a) Grade separation projects that will eliminate significant blockages or backups.

(b) Grade separation projects that will have a positive impact on the local economy, safety, and the efficient movement of goods and people.

Sec. 1104. (1) From the funds appropriated in part 1 for local road and material research program, the department shall establish a local road and material research program with the purpose of promoting and funding applied research related to road and bridge preservation on the local road system, including research into innovative materials and processes.

(2) The program shall be administered by a local road agency research board consisting of representatives of local road agencies, the department, and a state university with a college of

engineering.

(3) Research project proposals may be submitted by local road agencies and state university engineering faculty. Grants must be awarded through a competitive grant application process. Projects must be selected for inclusion in the program subject to available funding and according to criteria established by the local road agency research board.

Sec. 1105. From the one-time funds appropriated in part 1 for new technology and mobility, $36,450,000.00 is appropriated to the department to be used as follows:

(a) $15,000,000.00 for implementation of aerial mobility and drone infrastructure projects, including drone hubs, drone ports, and last mile delivery.

(b) $8,000,000.00 for Michigan mobility fund platform and mobility public-private partnership and programming projects.

(d) $4,500,000.00 for an inductive charging interoperability pilot project.

(e) $5,000,000.00 to develop and implement a road usage charge/vehicle miles travel fee pilot project.

(f) $2,950,000.00 for a Michigan e-bike purchase incentive program to implement House Bill No. 4491 of the 102nd Legislature if the bill is enacted into law.

Sec. 1106. (1) From the funds appropriated in part 1 for school zone automated speed enforcement pilot project, the department shall develop and implement an automated school zone speed enforcement pilot project. The purpose of the project is to determine the effectiveness of automated speed enforcement technology combined with a public education and information

campaign.

(2) In implementing the pilot project program under this section, the department shall partner with a local police agency and a private industry consultant. The private industry consultant must adhere to national Criminal Justice Information Services guidelines, have facilities and practices audited annually, and be strategic partners with the National Law Enforcement Telecommunication System (NLETS).

(3) The department shall submit a report on the pilot project to the standard report recipients on or before March 1, 2025. The report must include a description of project methodology, findings, and recommendations.

Sec. 1107. From the funds appropriated in part 1 for supplier risk and information subscription, the department shall use not less than $50,000.00 for a comprehensive supplier risk and information subscription service for precontract risk assessment.

Sec. 1108. From the funds appropriated in part 1, the department shall install bioswales, biofilters, and other vegetated channels in state trunkline highway medians in order to treat, convey, infiltrate, and attenuate incoming stormwater runoff. Actions required under this section include, but are not limited to, the conversion of state trunkline highway medians to vegetation including wildflowers.

Sec. 1109. (1) From the funds appropriated in part 1, the department shall study factors related to the implementation of road diets on nonfreeway state trunkline highways within municipal boundaries. The study must review all of the following:

(a) Costs of roadway conversion.

(b) Cost savings related to maintenance and operation.

(2) As used in this section, "road diet" means a roadway reconfiguration to reduce the number of vehicular travel lanes with a view to enhanced safety, mobility, and access for all road users and accommodation of a variety of transportation modes.

Sec. 1110. From the funds appropriated in part 1 for 1-time local bus operating, the department shall distribute funds to eligible authorities and eligible governmental agencies as those terms are defined in section 10c of 1951 PA 51, MCL 247.660c, in accordance with the provisions of section 10e(4)(a) of 1951 PA 51, MCL 247.660e.