DEPARTMENT OF TRANSPORTATION

BUREAU OF URBAN AND PUBLIC TRANSPORTATION

COMPREHENSIVE TRANSPORTATION FUND

(By authority conferred on the department of transportation by sections 10b and 10g

of Act No. 51 of the Public Acts of 1951, as amended, and section 63 of Act No. 306 of

the Public Acts of 1969, as amended, being §§247.660b, 247.660g, and 24.263 of the

Michigan Compiled Laws)

PART 1. GENERAL PROVISIONS

R 247.4101 Definitions.

Rule 101. (1) As used in these rules:

(a) "Accessibility plan" means the vehicle accessibility plan that is required by the

accessibility sections of the act.

(b) "Accessible vehicles" means lift or ramp equipped vehicles.

(c) "Act" means sections 10(1), 10b to 10e, 10g, 10h, 10j, 10n, 14(5), and 18b(4) of

Act No. 51 of the Public Acts of 1951, as amended, being §§247.660(1), 247.660b

to 247.660e, 247.660g, 247.660h, 247.660j, 247.660n, 247.664(5), and 247.668b(4) of

the Michigan Complied Laws.

(d) "Applicant" means any 1 of the following:

(i) A local public transportation provider, which is an eligible authority or eligible

governmental agency as defined by the act.

(ii) An intercity passenger carrier, which is defined as a person, corporation, or

other entity that is authorized by federal law or pursuant to Act No. 432 of the Public

Acts of 1982, as amended, being §474.101 et seq. of the Michigan Compiled Laws, to

transport passengers for hire and that may also transport other items.

(iii) A port authority as defined by Act No. 639 of the Public Acts of 1978, as

amended, being §120.101 et seq. of the Michigan Compiled Laws.

(iv) An intercity freight carrier, which is defined as a person, corporation, or

other entity identified in Act No. 295 of the Public Acts of 1976, as amended, being

§474.51 et seq. of the Michigan Compiled Laws, that would establish, improve, or

support facilities or services for intercity freight transportation purposes.

(v) Other eligible entities included in the general functions of the state

transportation department section of the act.

(e) "Application instructions" means the document which is issued by the

department to local public transportation and intercity passenger transportation

applicants and which describes the information an applicant must submit to the

department to participate in the state transportation program in the following state

fiscal year

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(f) "Commission" means the Michigan state transportation commission or its

successor.

(g) "Department" means the Michigan department of transportation or its

successor.

(h) "Director" means the director of the department or a person who is designated

to act as the director.

(i) "Expand" means to provide for new facilities or new services.

(j) "FTA" means the United States department of transportation federal transit

administration or its successor.

(k) "Improve" means to enhance existing facilities.

(l) "Local public transportation" means services, facilities, and equipment,

including local bus service, water vehicle services, and local passenger rail services,

and which are operated by an eligible authority or an eligible governmental agency as

established in R 247.4103.

(m) "Persons who have disabilities" means an individual who has a physical or

mental impairment that substantially limits one or more of the major life activities of

such individual, a record of such an impairment, or being regarded as having such an

impairment.

(n) "Port authority operating budget" means the expenses identified in Act No. 639

of the Public Acts of 1978, as amended.

(o) "Preserve" means to maintain the current status of existing facilities, excluding

routine maintenance expenses.

(p) "Project" means an activity which is funded or to be funded from the

comprehensive transportation fund or from the proceeds of bonds and which is budgeted

and managed as a separate entity.

(q) "Public" means all persons, regardless of age, sex, color, race, creed, national

origin, or persons who have disabilities.

(r) "Public notice" means an advertisement that is placed in at least 1 newspaper

of general circulation which serves the area affected by the program.

(s) "Recipient" means an applicant as defined in subdivision (d) of this subrule.

(t) "Rehabilitation" means the labor, equipment, and materials that are necessary

to repair or improve and extend the useful life of public transportation vehicles,

equipment, or facilities for specified rehabilitation projects.

(2) The terms defined in the act have the same meanings when used in these rules.

History: 1998-2000 AACS.

R 247.4102 Local public transportation and intercity passenger transportation

financial assistance programs; submittal and approval process.

Rule 102. (1) The department shall make application instructions available to all

prospective local public transportation and intercity passenger transportation

applicants and other interested parties. The application instructions shall contain the

items required by the act.

(2) The department shall update the application instructions each year. The

department may issue amended application instructions based upon programmatic or

funding changes.

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(3) A local public transportation and intercity passenger transportation applicant

shall file an application with the department. An application shall contain all of the

information required in the application instructions.

(4) A local public transportation and intercity passenger transportation applicant

shall give public notice of its intent to apply for comprehensive transportation funds

according to the act. A local public transportation and intercity passenger transportation

applicant shall transmit all comments it receives to the department. The public notice

shall include all of the following information:

(a) The amount of funding requested.

(b) The operating and capital program that the local public transportation and

intercity passenger transportation applicant proposes to undertake with the funds.

(c) The location where the application may be reviewed.

(5) The department shall review the applications and transmit comments to each

local public transportation and intercity passenger transportation applicant.

(6) Each local public transportation and intercity passenger transportation applicant

shall provide any additional information that is requested and responses that are

related to subrule (5) of this rule.

(7) The department shall approve, modify, or reject all or any portion of an

application by written notification to the local public transportation and intercity

passenger transportation applicant setting forth its reasons for approval, modification,

or rejection. The applicant may appeal any approval, modification or rejection of

the application to an appeals officer as appointed by the director of the department. The

department may modify or reject all or any portion of a local transportation or intercity

passenger program if any 1 of the following situations occurs:

(a) A local public transportation and intercity passenger transportation applicant

fails to submit an application as outlined by the application instructions provided

under subrule (1) of this rule and application sections of the act or fails to comply with

the requirements prescribed in the act.

(b) The total estimated revenues available for comprehensive transportation fund

programs are exceeded by the sum of all funding that is requested in the applications

received for the state fiscal year.

(c) The department determines that

justification.

a

proposed project requires further

(d) The eligible authority or eligible governmental agency has failed to develop

and implement plans, programs, and services, or use appropriate equipment, to

provide public transportation for the elderly and persons who have disabilities as set

forth in the provisions of R 247.4201 to R 247.4203.

(8) A local public transportation and intercity passenger transportation applicant

shall notify the department of a proposed change in an initial or amendatory application

for federal funds that would require an increase or decrease of the state financial

commitment.

(9) A local public transportation and intercity passenger transportation applicant

shall provide the department with a copy of any federal application for capital or

operating assistance at the time an initial or amendatory application is filed with the

federal government.

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(10) The department may administratively fund the first 3 years of new services

using the funding limits and provisions established in the operating grants to eligible

authorities and eligible governmental agencies section of the act.

History: 1998-2000 AACS.

R 247.4103 Eligibility; documentation required.

Rule 103. To establish eligibility, an applicant shall submit documentation,

as applicable, to the department as follows:

(a) A local public transportation applicant shall submit documentation under R

247.4104 and both of the following provisions:

(i) Documentation that the applicant or its designated service provider is legally

furnishing, or has the legal capacity to furnish, public transportation services in

the area.

(ii) Documentation that the applicant has been established according to state law.

(b) A local public transportation applicant that has previously submitted the

materials in subdivision (a) of this rule shall certify annually, in the resolution of intent

required by R 247.4104, that changes in eligibility documentation have not occurred

during the past state fiscal year. Any change shall be submitted to the department

as part of the application required under R 247.4102.

(c) An intercity passenger carrier applicant shall submit both of the following:

(i) Documentation that the applicant is legally furnishing, or has the legal

capacity to furnish, public transportation services.

(ii) A company letter signed by an authorized company representative that names

an official representative of the applicant for all public transportation matters who

is authorized to provide information that is required by the commission or department

for its administration of the act.

(d) An intercity freight carrier applicant shall submit the name of an official

representative of the applicant who is authorized to provide information that is

required by the commission or department for its administration of the act.

(e) A port authority applicant shall submit all of the following documentation

and information:

(i) Documentation that the applicant has been created under Act No. 639 of the

Public Acts of 1978, as amended, being §120.101 et seq. of the Michigan Compiled

Laws.

(ii) Adopted bylaws and articles of incorporation that indicate the specific

duties, functions, and powers of the applicant.

(iii) The name of an official representative of the applicant who is authorized to

provide information that is required by the commission or department for its

administration of the act.

History: 1998-2000 AACS.

R 247.4104 Resolution of intent.

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Rule 104. A local public transportation applicant shall annually enact a resolution

of intent as described in the application instructions to participate in the

comprehensive transportation fund. The resolution shall provide for all of the

following:

(a) Indicate that the budget for the local transportation program is balanced and

specify the sources and amount of estimated revenues that support the proposed

expenditures.

(b) Name an official representative of the applicant for all public transportation

matters who is authorized to provide such information as deemed necessary by the

commission or department for its administration of the act.

(c) Certify that changes in eligibility documentation have not occurred during the

past state fiscal year.

History: 1998-2000 AACS.

R 247.4105 Eligible

and

ineligible

expenses

for

local

public

transportation and intercity passenger transportation; determination of

distribution of comprehensive transportation funds to intercity passenger

carriers.

Rule 105. (1) Eligible and ineligible expense and revenue definitions for local

public transportation operating assistance or water vehicle operating assistance that are

funded under the act shall be annually included in the annual application instructions

provided by the department. The expense and revenue estimates submitted and agreed to

in the approved annual

application from the eligible authorities and eligible

governmental agencies shall be in agreement with the annual application instructions.

(2) Eligible and ineligible expenses for intercity passenger transportation operating

assistance that are funded under the act shall be as agreed upon in the executed

contractual agreement.

(3) Eligible capital costs, defined as any unit that has a cost of more than $300.00

and a useful life of more than 1 year, that are funded under the act and bond funds for

local public transportation projects and for intercity passenger carrier projects include all

of the following:

(a) Acquisition.

(b) Purchase.

(c) Lease or lease-purchase.

(d) Construction.

(e) Rehabilitation.

(f) Operating expenses allowed by the federal government in an executed federal

capital contract

(4) All programs shall have project costs defined in the contractual agreement.

(5) An applicant may submit any operating or capital cost that is not specified in

the application instructions to the department, in writing, for a determination as to

eligibility. The department shall notify all recipients, in writing, upon the issuance of

a determination of eligibility and specify the effective date.

(6) A determination of eligibility is not funding approval.

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(7) In determining the distribution of comprehensive transportation funds to be

made to intercity passenger carriers under the act, the department shall award

operating assistance projects by a competitive or negotiated bid process and shall award

capital projects by application.

History: 1998-2000 AACS.

R 247.4106 Eligible and ineligible expenses for intercity freight projects and

port authority operating budgets.

Rule 106. (1) Eligible capital costs for rail freight projects that are funded under

the act and bond funds are as follows:

(a) Activities to preserve, improve, or expand state-owned facilities.

(b) Activities or loans to improve or expand privately owned freight facilities.

(c) Activities, loans, or grants to improve or expand freight facilities to better serve

economic development within Michigan.

(2) Eligible costs for port authority operating budgets are as defined in R

247.4101(l).

(3) A determination of eligibility is not funding approval.

(4) An applicant may submit any operating or capital cost that is not specified in

subrules (1) through (3) of this rule to the department, in writing, for a determination

as to eligibility. The determination shall take effect upon receipt of notification by

the recipients, unless the determination is appealed to the commission.

History: 1998-2000 AACS.

R 247.4107 Local public transportation cost allocation plan.

Rule 107. (1) A recipient shall submit, to the department for its approval, a

cost allocation plan for general and administrative overhead costs if both of the

following conditions apply:

(a) The local public transportation recipient receives funds for eligible operating

expenses under the act.

(b) One of the following conditions applies:

(i) A recipient has joint costs with a unit or units of government or has employees

who simultaneously work for other governmental agencies.

(ii) A recipient has multiple funding sources that require separate accounting.

(iii) A recipient provides services to outside agencies, including transit agencies.

(2) Specialized services agencies, as described in the act, are exempt from the

provisions of this rule.

(3) A recipient shall submit the cost allocation plan in narrative form. The cost

allocation plan shall describe the methodology used.

(4) A recipient shall submit an amended plan to the department within 60 days

after any change in conditions as described in subrule (1)(b) of this rule.

(5) A recipient's independent certified public accountant shall note in the recipient's

annual financial and compliance audit whether the actual cost allocation is in

compliance with the cost allocation plan that was submitted to the department.

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History: 1998-2000 AACS.

R 247.4108 Rescission.

Rule 108. R 247.801 to R 247.814 of the Michigan Administrative Code,

appearing on pages 721 to 727 of the 1979 Michigan Administrative Code, are

rescinded.

History: 1998-2000 AACS.

PART 2. ACCESSIBILITY PLAN

R 247.4201 Accessibility plan; content; amendment.

Rule 201. (1) Each applicant seeking comprehensive transportation funds to

purchase, lease, or rent demand-actuated vehicles shall prepare and submit an

accessibility plan to the department as a part of its application.

(2) An accessibility plan shall include all of the following information and items:

(a) The number of demand-actuated vehicles that are presently in service, including

loaner vehicles, that were purchased with comprehensive transportation fund

monies, and the number of demand-actuated accessible vehicles.

(b) The number of demand-actuated vehicles in the anticipated fleet, including

the number of demand-actuated accessible vehicles.

(c) The current definitions of the elderly and persons who have disabilities

that are used by the applicant, and the total number of the elderly and persons who

have disabilities in the service area.

(d) The current fare structure that is in use for the elderly, persons who have

disabilities, and the rest of the general public for both fixed schedule and fixed route

service, if applicable, and for demand-actuated public transportation service.

(e) A narrative description of the process that the applicant used to develop the

accessibility plan. The narrative shall include a description of the local advisory council

involvement in the development and review of the accessibility plan.

(f) A map and narrative description of the service area, as of the plan submission

date, for fixed schedule and fixed route service, if applicable, and for demand-actuated

public transportation service.

(g) The current service schedule, including hours per day and days of the week, for

both fixed schedule and fixed route service, if applicable, and for demand-actuated public

transportation service.

(h) A narrative description of how the information required in subrule

(2)(g) of this rule is made available in alternate formats to persons who have

disabilities.

(i) Whether transit vehicles are available for use during hours or days other than

regular service hours or days and confirmation that accessible transit vehicles are

available for use by the elderly and persons who have disabilities to the same extent as

the general public.

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(j) Whether the elderly, persons who have disabilities, and the general public

must make an advance request to obtain demand-actuated public transportation

service and the advance request time period.

(k) A narrative description of constraints on capacity and restrictions on trip

purpose.

(l) A narrative summarization for the number of demand-actuated vehicles

requested and, within the total number requested, the number of accessible vehicles,

including the applicant's reasons for the number of accessible vehicles.

(m) Comments of the local advisory council.

(n) The applicant's response to local advisory council comments.

(o) The official transmittal letter from the applicant to the department.

(3) Each applicant shall prepare and submit an amendment with their annual

application for funding. An amendment is also required when proposed changes occur

after the application has been submitted. These include material changes in the plan

contents made under subrule (2) of this rule. Amendments shall be submitted on a form

provided in the annual application instructions which includes the Americans with

Disabilities Act of 1990 certification. An amendment is not necessary for changes

regarding department loaned vehicles.

(4) All plan amendments shall include the documents that are required under subrule

(2)(m) and (n) of this rule as well as a written description of the changes from a

previously approved accessibility plan.

History: 1998-2000 AACS.

R 247.4202 Accessibility plan local advisory council composition.

Rule 202. (1) A local advisory council shall be composed and structured in such a

manner so as to facilitate an independent objective assessment of the accessibility plan

by persons in the service area.

(2) An applicant shall have a local advisory council established and appointed.

The council shall consist of not less than 3 members.

(3) Local advisory council members shall not be employees of the applicant and

shall not be members of the applicant's executive committee or governing board.

(4) Each applicant shall include, with the accessibility plan, a list of council

members and their affiliations. The applicant shall identify the members who are

persons who have disabilities, are 65 years of age or older, or are representatives of

persons who have disabilities or are 65 years of age or older.

(5) Each applicant shall ensure that 50% of the membership will represent persons

who are 65 years of age or older and persons who have disabilities within the service

area and, jointly with the area agency on aging, shall approve at least 1 member, or the

equivalent of 12% of the membership, of the local advisory council. The applicant shall

ensure that the membership will include people who have diverse disabilities and the

elderly who are users of public transportation.

History: 1998-2000 AACS.

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R 247.4203 Accessibility plan review and approval process.

Rule 203. The department shall process an accessibility plan in accordance with

both of the following procedures:

(a) The department shall, within 60 days after submission of the accessibility

plan, do either of the following:

(i) Approve the accessibility plan as submitted or amended.

(ii) Reject the accessibility plan as submitted and make recommendations to the

applicant for modifications.

(b) A plan that is not approved or rejected by the department within 60 days after

submission is considered approved as submitted.

History: 1998-2000 AACS.

PART 3. REPORTING AND COMPLIANCE REQUIREMENTS

R 247.4301 Financial and compliance audits.

Rule 301. (1) A recipient of funds under the local public transportation operating

grants section and the new services section of the act shall provide, to the

department, an annual financial and compliance audit report and management letter

within 120 calendar days from the end of the local fiscal year. The report shall

include a response certified by an independent certified public accountant in accordance

with the department's and the Michigan department of treasury's audit guide. The

Department may grant an extension of up to 60 days upon receipt of a written request.

(2) Failure to comply with the audit section of the act may result in the withholding

of local public transportation operating grants and new services grants under the act as

required under the withholding section of the act and R 247.4303.

(3) The department shall audit a recipient of funds under sections other than the

local public transportation operating grants and new services grants sections of the act in

accordance with the contract entered into by the recipient and the department.

History: 1998-2000 AACS.

R 247.4302 Local public transportation progress report.

Rule 302. (1) Not later than 40 calendar days after the end of each state fiscal year,

a recipient of funds under the local public transportation operating grants and new

services sections of the act shall file an annual local public transportation progress

report to enable a preliminary closeout of the statutory distribution and the new services

distribution after the third year.

(2) Not later than 40 days after the end of each fiscal quarter, a local public

transportation recipient of operating grants and new services grants under the act shall

file a quarterly local transportation progress report.

(3) Failure to comply with the quarterly report and the progress report sections of

the act may result in the withholding of local public transportation operating grants

and new services grants under the act.

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History: 1998-2000 AACS.

R 247.4303 Procedures for adjusting or withholding funds.

Rule 303. (1) The department may adjust or withhold project funds that are awarded

under the act or may adjust project quantities or alter the project scope under any of the

following circumstances:

(a) Federal funds that are necessary for the completion of the project are not

awarded to the recipient by the end of the following fiscal year in which the project was

approved.

(b) The actual comprehensive transportation fund revenues are below the

estimated comprehensive transportation fund revenues on which a project award was

made.

(c) The actual cost of the project varies from the estimated costs on which a project

award was made.

(d) Revisions to the local transportation programs are requested by a recipient.

(e) The scope of the project is reduced.

(f) A recipient fails to comply with the act.

(g) A recipient fails to maintain project equipment pursuant to the contract.

(2) The department shall notify a recipient, by mail, of a department-

initiated action to withhold funds for noncompliance. The notice shall clearly set forth

the reasons for the proposed action. The recipient shall have 30 days from the date of

issuance of the notice to respond or undertake corrective action. The department may

grant an extension if the recipient files a written appeal with the department.

(3) If, within 30 days after the date that the notice of intent to withhold was issued,

the recipient has not corrected the reason for the withholding and notified the

department of that correction, has not been granted an extension, or has not appealed

the action, in writing, to the department and

been granted a waiver, then the department shall send the applicant, by certified

mail, a notification that funds are being withheld. Withholding of funds shall occur

automatically after the notice of withholding is mailed.

History: 1998-2000 AACS.

R 247.4304 Contractual agreements generally.

Rule 304. (1) A contractual agreement is required for authorized projects that are

funded under the comprehensive transportation fund and bond fund sections of the act.

(2) A contractual agreement is not required for authorized local public

transportation operating assistance grants under the act.

History: 1998-2000 AACS.

R 247.4305 Third-party contracts; applicability.

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Rule 305. (1) A recipient who has not been certified under R 247.4306 and who

receives comprehensive transportation funds for projects funded under the act or

supplemental appropriations shall comply with the provisions of this rule.

(2) A recipient whose grant is either partially or 100% state-funded and who is

certified under R 247.4306 is not required to comply with the provisions of this

rule.

(3) Third-party contract processing shall be consistent with commission policy.

Approval, when required by commission policy, shall take place before contract

execution.

(4) Departmental contractual agreements shall require that a recipient submit any

documentation which is related to third-party procurement to the department for

information purposes at the request of the department.

History: 1998-2000 AACS.

R 247.4306 Third-party contracts; federal involvement.

Rule 306. (1) A recipient that is considered certified by FTA will be considered

certified by the department. If a recipient is decertified by FTA, then the recipient

shall immediately notify the department.

(2) The department is responsible for certifications for nonurbanized recipients

who utilize department procedures.

(3) The department may request third-party contract documents that are prepared

under subrule (1) or (2) of this rule for informational purposes.

(4) A recipient who is unable to, or who elects not to, comply with the provisions

of subrule (1) or (2) of this rule and a recipient who has a contractual requirement of

department approval shall comply with the provisions of R 247.4305.

History: 1998-2000 AACS.

R 247.4307 Declaratory rulings.

Rule 307. (1) The department, upon the written request of an interested person,

may issue a declaratory ruling as to the applicability of the act or a rule to an actual

statement of facts if the person submits a clear and concise statement of the actual

statement of facts to the department.An interested person may submit a brief or other

reference to legal authorities upon which the person relies for determining the

applicability of the act or a rule to the statement of facts.

(2) If the department determines it will issue a declaratory ruling, then it shall

furnish the person with a written statement to that effect and shall set forth the time in

which it will issue the ruling.

(3) A ruling shall repeat the actual statement of facts and the legal authority on

which the department relies for the ruling it makes. A ruling, once issued, is binding on

the department, and the department shall not change the ruling retroactively, but may

change a ruling prospectively.

History: 1998-2000 AACS.

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