A. The department fleet operations fund is established that consists of:

1. Monies appropriated by the legislature to the department for the purchase, maintenance, service or repair of equipment and consumable material, including monies appropriated to pay salaries, wages and benefits of department employees engaged in maintaining, servicing or repairing equipment or supervising these activities.

2. Monies received by the department from the sale of equipment and consumable material at public auction or by other disposal methods provided by law.

3. Monies credited and transferred to the fund pursuant to subsection C of this section for using consumable material and using or servicing equipment.

4. Monies received from insurance recoveries for equipment and consumable material losses.

5. Monies received from donations.

6. Monies received from the United States as reimbursement to provide aid for the use of equipment and consumable materials in constructing, maintaining and repairing transportation improvements.

7. Earnings on any monies in the department fleet operations fund that are invested pursuant to section 28-6996.

B. The director shall establish and from time to time modify or adjust the equipment rental schedule and the other fee schedule to reflect all current costs of owning, maintaining, operating and servicing equipment, including the costs of labor and supervision and consumable materials used in the equipment.

C. Department equipment shall not be used for any purpose and the department shall not incur an expense in maintaining, servicing or repairing equipment unless within thirty days after the end of any month in which equipment is used or the expenses are incurred both:

1. The appropriate project, program, section, division, activity or budget unit is charged for the use pursuant to the equipment rental schedule or other fee schedule.

2. The department fleet operations fund is credited and the monies are transferred to that fund.

D. Monies in the department fleet operations fund are subject to legislative appropriation and shall be spent only to:

1. Purchase equipment and consumable materials.

2. Rent equipment.

3. Pay salaries, wages and employee related costs and benefits and operating expenses for employees engaged in repairing, maintaining or servicing equipment or administering these activities.

4. Pay salaries, wages, employee related costs and benefits and the operating expenses of the department motor pool.

E. Monies in the department fleet operations fund are subject to legislative appropriation and shall be spent in conformity with the laws governing state financial operations, except that balances remaining at the end of the fiscal year do not revert to the state general fund or the state highway fund.

F. For the purposes of this section:

1. "Consumable material" means motor vehicle fuel, lubricants, tires, batteries, replacement or repair parts, automotive accessories and any other necessary article of supply or material consumed in operating, improving, repairing or maintaining equipment.

2. "Equipment" means any automobile, truck, tractor, trailer, motor driven vehicle, aircraft or other piece of equipment used by the department in enforcing traffic laws and in administering, maintaining, constructing or repairing the state transportation system and any necessary shop tool or device used in improving, repairing or maintaining equipment.

3. "Equipment rental schedule" means the list of rental rates for each piece of rental equipment owned or rented by the department and used as the basis of reimbursing the department fleet operations fund for using any equipment owned by the department.

4. "Other fee schedule" means the list of all costs and expenses that is used as the basis of reimbursing the department fleet operations fund for an expenditure for labor or consumable material that is not reflected in the equipment rental schedule but which cost or expense is nevertheless incurred by the department in maintaining, servicing or repairing equipment.