SENATE BILL NO. 906
EXECUTIVE BUDGET BILL
February 24, 1998, Introduced by Senators GAST, MC MANUS,
GOUGEON, GEAKE and STEIL and referred to the Committee
on Appropriations.
A bill to make appropriations for a capital outlay program for the
fiscal year ending September 30, 1999; to implement the appropriations
within the budgetary process; to make appropriations for planning and
construction at state agencies; to make appropriations for state
building authority rent and insurance; to make a grant for state
building authority rent; to provide for the acquisition of land and
buildings; to provide for the elimination of fire hazards; to provide
for special maintenance, remodeling and addition, alteration,
renovation, demolition, and other projects; to provide for elimination
of occupational safety and health hazards; to provide for the award and
implementation of contracts; to provide for the purchase of furnishings
and equipment relative to occupancy of a project; to provide for certain
advances from the general fund; to prescribe powers and duties of
certain state officers and agencies; to require certain reports, plans,
and agreements; to provide for leases; to provide for transfers; to
prescribe standards and conditions relating to the appropriations; and
to provide for the expenditure of appropriations.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 101. There is appropriated for certain capital outlay projects
at the various state agencies for the fiscal year ending September 30,
1999, from the following funds:
CAPITAL OUTLAY
APPROPRIATIONS SUMMARY:
GROSS APPROPRIATION . . . . . .$ 389,659,400
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers. . . . . 4,000,000
ADJUSTED GROSS APPROPRIATION . . . . . . $385,659,400
Federal revenues:
Total federal revenues. . . . . 72,216,000
Special revenue funds:
Total local funds . . . . . 23,129,000
Total private funds . . . . . . 0
Total other state restricted revenues . . . . . 31,553,200
State general fund/general purpose. . . . . . . $258,761,200
DEPARTMENT OF MANAGEMENT AND BUDGET
Lump sum projects:
Major special maintenance and remodeling
for state agencies . . . . $ 4,000,000
Major special maintenance and remodeling
for department of community health special
maintenance and remodeling and additions
projects at various ICF/MR and state
psychiatric facilities . . . . . 2,000,000
Major special maintenance and remodeling for
department of corrections. . . . . . 3,000,000
Major special maintenance and remodeling for
department of community health . . . . . . 1,500,000
Major special maintenance and remodeling for
family independence agency . . . . . 2,000,000
Major special maintenance and remodeling for
department of management and budget. . . . . . 2,500,000
GROSS APPROPRIATION . . . . . . $ 15,000,000
Appropriated from:
Interdepartmental grant revenues:
IDG from building occupancy charges . . . . . . 4,000,000
Federal revenues:
HHS-HCFA, title XIX - intermediate care
facilities for the mentally retarded and state
psychiatric facilities. . . . . . . 2,000,000
State general fund/general purpose. . . . . . . $ 9,000,000
DEPARTMENT OF MILITARY AFFAIRS
Lump sum projects:
Department of military affairs remodeling and
additions and special maintenance projects. . . . . . . 2,175,000
GROSS APPROPRIATIONS. . . . . . $ 2,175,000
Appropriated from:
DOD, department of the army, national guard
bureau. . . . . 1,548,000
State general fund/general purpose. . . . . . . $ 627,000
DEPARTMENT OF NATURAL RESOURCES
State park remodeling and additions:
Buildings, utilities, and site work,
various state parks and recreation areas . . . . . . $ 1,500,000
State park improvements:
Buildings, utilities, and site work - various
state park and recreation areas. . . . . . 1,000,000
Swan River salmon egg take facility (total
project cost not to exceed $1,500,000). . . . . . 750,000
GROSS APPROPRIATION . . . . . . $ 3,250,000
Appropriated from:
Federal revenues:
DOI federal, U.S. fish and wildlife, Dingell-
Johnson . . . . . . 375,000
Special revenue funds:
Game and fish protection fund . . . . . . 375,000
Park improvement fund . . . . . 1,000,000
State park endowment fund . . . . . . 1,500,000
State general fund/general purpose. . . . . . . $ 0
DEPARTMENT OF NATURAL RESOURCES
Waterways projects:
Boating access site program:
Equipment repairs allotment - various counties. . . . . . 40,000
Paving projects - various counties. . . . . . . 625,000
Routine maintenance - various counties. . . . . 55,000
Small projects allotment - various counties . . . . 335,000
State facilities - boating access sites . . . . . . 1,810,000
Grants-in-aid - boating access sites:
Small grants program - various counties . . . . . . 100,000
Cheboygan county restroom building. . . . . . . 90,000
Harbors and docks program:
Emergency repairs - various counties. . . . . . 250,000
Engineering studies - various counties. . . . . 100,000
Utilities upgrades - various counties . . . . . 250,000
Preventative maintenance - various counties . . . . 100,000
Iosco county - East Tawas mooring restroom
building. . . . . . 425,000
Huron county - Port Austin mooring expansion
(total project cost not to exceed $2,750,000) . . . . . 1,420,000
Mackinac county - Mackinac Island mooring
expansion (total project cost not to exceed
$5,500,000). . . . . . 4,766,700
Cheboygan county - Mackinaw City marina building
(total not to exceed $222,000, state
share $110,000). . . . . . 111,000
Delta county - Escanaba pier anchorage
(total project cost not to exceed $45,000,
state share $22,500) . . . . . . 22,500
Mackinac county - Naubinway mooring
redevelopment (total project cost not to
exceed $850,000) . . . . . 650,000
GROSS APPROPRIATION . . . . . . $ 11,150,200
Appropriated from:
Federal revenues:
DOI, U.S. fish and wildlife service, Dingell-
Johnson . . . . . . 1,082,000
Special revenue funds:
Michigan state waterways fund . . . . . . 10,068,200
State general fund/general purpose. . . . . . . $ 0
DEPARTMENT OF TRANSPORTATION
STATE TRUNKLINE FUND
Department buildings and facilities:
New maintenance facility - Battle Creek,
district 7 (total cost not to exceed $3,000,000) . . . . $ 650,000
Salt storage buildings and brine run-off
control - contract agencies locations. . . . . 1,000,000
Construct, renovate, and/or replace salt
storage buildings, various maintenance
garage locations . . . . . 600,000
New project offices - various statewide
locations (total cost not to exceed $10,000,000). . . . . . 1,740,000
Equipment storage buildings - various
statewide locations. . . . . . . 425,000
Research vehicle building - Dimondale (total
cost not to exceed $200,000). . . . . . 200,000 Remodeling and additions:
Building renovation and expansion,
metro district office - Southfield (total
cost not to exceed $4,120,000) . . . . . . 1,470,000
Environmental pollution control measures:
Site investigation and toxic cleanup-
various locations. . . . . 100,000
A & E repair addition - St. Ignace maintenance
garage (total cost not to exceed $500,000). . . . . . . 500,000
ADA modifications - various MDOT facilities . . . . 500,000
Energy savings modifications upgrade:
Lighting and electrical systems at older
maintenance facilities - various locations. . . . . . . 450,000
Reroof MDOT facilities, fence MDOT properties, and
install bituminous surface/resurfacing -
various locations. . . . . 440,000
Install/replace hydraulic floor hoists-
various locations. . . . . 450,000
MIOSHA projects and asbestos removal-
various locations. . . . . 140,000
Restroom and lunchroom modifications-
various locations. . . . . 100,000
Institutional and agency roads. . . . . . 750,000
Purchase property-various locations . . . . . . 75,000
Miscellaneous projects. . . . . 200,000
GROSS APPROPRIATION . . . . . . $ 9,790,000
Appropriated from:
Special revenue funds:
State trunkline fund. . . . . . 9,790,000
State general fund/general purpose. . . . . . . $ 0
DEPARTMENT OF TRANSPORTATION
AERONAUTICS FUND:AERONAUTICS PROGRAMS
Airport improvement programs. . . . . $97,640,000
GROSS APPROPRIATION . . . . . . $ 97,640,000
Appropriated from:
Federal revenues:
DOT-FAA . . . . . 65,511,000
Special revenue funds:
Local aeronautics match . . . . 23,129,000
State aeronautics fund. . . . . 4,000,000
State general fund/general purpose. . . . . . . $ 5,000,000
STATE BUILDING AUTHORITY RENT
State building authority rent - state agencies. . . . . . $ 36,445,700
State building authority rent - department of
corrections. . . . . . 86,183,800
State building authority rent - universities. . . . . . . 116,203,900
State building authority rent - community
colleges . . . . 11,820,800
GROSS APPROPRIATION . . . . . . $250,654,200
Appropriated from:
Federal funds-grand tower facility . . . . . 1,700,000
Special revenue funds:
State building authority - University of
Michigan, medicare and medicaid programs. . . . . 3,300,000
State lottery funds . . . . . . 1,520,000
State general fund/general purpose. . . . . . $ 244,134,200
GENERAL SECTIONS
Sec. 201. (1) Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state sources for fiscal
year 1998-99 is estimated at $290,314,400.00 in this bill and state
spending from state sources paid to local units of government for fiscal
year 1998-99 is estimated at $9,973,500.00. The itemized statement
below identifies appropriations from which spending to units of local
government will occur:
CAPITAL OUTLAY
Department of natural resources - waterways. . . . . . $ 973,500
State transportation department - state
aeronautics program . . . . 9,000,000
Total. . . . . $ 9,973,500
(2) If it appears to the principal executive officer of a department
or branch that state spending to local units of government will be less
than the amount that was projected to be expended under subsection (1),
the principal executive officer shall immediately give notice of the
approximate shortfall to the state budget director. Sec. 202. As used in this bill:
(a) "ADA" means the Americans with disability act.
(b) "Appropriations committees" means the appropriations committee
of the senate and the appropriations committee of the house of
representatives.
(c) "A & E" means automotive and equipment.
(d) "Board" means the state administrative board.
(e) "Community college" does not include a state agency or
university.
(f) "Department" means the department of management and budget.
(g) "Director" means the director of the department of management
and budget.
(h) "DOD" means the United States department of defense.
(i) "DOI" means the United States department of the interior.
(j) "DOT-FAA" means the United States department of transportation
federal aviation administration.
(k) "Fiscal agencies" means the senate fiscal agency and the house
fiscal agency.
(l) "HHS-HCFA" means the United States department of health and
human services, health care financing administration.
(m) "ICF/MR" means intermediate care facilities for the mentally
retarded.
(n) "IDG" means interdepartmental grant.
(o) "JCOS" means the joint capital outlay subcommittee of the
appropriations committees.
(p) "MDOT" means the Michigan department of transportation.
(q) "MIOSHA" means the Michigan occupational safety and health act.
(r) "Self-liquidating project" means a project constructed by a
community college or university with money raised through the use of a
debt instrument, which is expected to generate revenues to amortize the
loan; a project constructed by a community college or university with
money derived from gifts or grants; or a project constructed with money
of the community college or university. A self-liquidating project may
or may not be a self-supporting project.
(s) "Self-supporting project" means a project of a community
college or university that will house a function or activity from which
revenue is generated that will cover all the direct and indirect
operating costs of the project without the additional transfer of any
other general fund money of the community college or university. (t) "State agency" means an agency of state government. State
agency does not include a community college or university.
(u) "State building authority" means the authority created under
1964 PA 183, MCL 830.411 to 830.425.
(v) "University" means a 4-year university supported by the state.
University does not include a community college or a state agency.
(w) "Utility system" means a utility supply or distribution system,
or a combination utility supply and distribution system.
(x) "VA-DMS" means the United States veterans administration,
department of medicine and surgery.
Sec. 203. The expenditures and funding sources authorized under this
bill are subject to the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594.
DEPARTMENT OF MANAGEMENT AND BUDGET
Sec. 301. Pursuant to section 242(9) of the management and budget
act, 1984 PA 431, MCL 18.1242, projects authorized for planning and/or
construction in PA 116 of 1997; PA 114 of 1997; PA 480 of 1997; and PA
321 of 1996 are exempted from requirements contained in section 242 of
the management and budget act, PA 431, MCL 18.1242.
Sec. 302. Each capital outlay project for which appropriations are
provided in this bill shall include sufficient funds for state agency
projects and from institution funds for college and university projects
to provide for professionally developed program statements and schematic
plans.
Sec. 303. (1) For projects listed in sections 301 and 302, the
department shall select professional services for the development of
program statements, planning, and design and construction for state
agency projects, shall provide standards for the selection of
professional services for college and university projects, and shall
provide review and approval of completed programming, planning, design
and construction processes.
(2) Completed program statements and schematic planning documents
shall be submitted to JCOS. Project authorization including a line-item
for design and construction must be approved by JCOS and the legislature
through an appropriation process.
(3) For state agency funded projects, the department shall manage
all aspects of design and construction.
(4) For community college and university projects, the department
shall develop and implement a review and approval process for design and
construction, to which community colleges and universities must adhere.
(5) Bid results for all authorized projects shall be submitted to
JCOS by the department.
(6) Appropriations made for studies and plans shall not be
considered a commitment on the part of the legislature to appropriate
funds for the completion of plans or construction of any project.
Sec. 304. (1) Before proceeding with final planning and
construction for projects at community colleges and universities
included in an appropriations bill, the community college or university
must sign an agreement with the department of management and budget that
includes the following provisions:
(a) The university or community college agrees to construct the
project within the total authorized cost established by the legislature
pursuant to the management and budget bill, 1984 PA 431, MCL 18.1101 to
18.1594, and an appropriations bill.
(b) The design and program scope of the project will not deviate
from the design and program scope represented in the program statement
and preliminary planning documents approved by the department of
management and budget.
(c) Any other items as identified by the department that are
necessary to complete the project.
(2) The department of management and budget retains the authority
and responsibility normally associated with the prudent maintenance of
the public's financial and policy interests relative to the state-financed construction projects managed by a community college or
university.
Sec. 305. (1) A state agency, university, or community college
shall not let a contract for new construction of a self-liquidating
project estimated to cost more than $1,000,000.00 unless the project is
authorized by the JCOS. The request for legislative authorization shall
be initially submitted for review to the JCOS and the department. A
nonstate-funded project request shall include a complete use and
financing statement as defined by a policy adopted by the JCOS. The use
and financing statement for a self-liquidating or self-supporting
project shall contain the estimated total construction cost and all
associated estimated operating costs including a statement of
anticipated revenues. As used in this section, "new construction"
includes land or property acquisition, remodeling and additions, and
maintenance projects.
(2) A self-liquidating project that is constructed in violation of
this section shall not receive state appropriations for purposes of
operating the project, or support for future infrastructure enhancements
that are necessitated, in part or in total, by construction of the
project.
(3) A state agency, including the department of military affairs,
shall not let a contract for a direct federally funded capital outlay
construction or major maintenance project that is estimated to cost more
than $1,000,000.00 and is to be constructed on state-owned lands unless
the project is approved by the department and by the JCOS. For projects
over $1,000,000.00, the state agency shall submit a use and finance
statement as required for community colleges and universities in
subsection (1). As used in this subsection, "direct federally funded"
refers to a project for which federal payments are made directly to the
construction vendor and not to the state of Michigan. (4) Universities, community colleges, and state agencies shall report
to the department and to the JCOS on a quarterly basis all projects
costing between $500,000.00 and $1,000,000.00.
Sec. 306. A statement of a proposed facility's operating cost
shall be included with the facility's program statement, schematic
plans, and preliminary plans when the plans are presented to JCOS.
Sec. 307. (1) In carrying out this bill and other bills containing
appropriations for preliminary studies and planning, repair,
maintenance, remodeling and additions, fire protection, occupational
safety and health act requirements, or new construction, the department
may obtain appropriated operating funds for professional services and
administration of projects. Money may also be transferred from
appropriations made in this bill to the department for the
administration of a special maintenance, remodeling and addition,
demolition, fire protection, or occupational safety and health act
project. A transfer for this purpose shall not exceed 5% of the amount
appropriated for each lump-sum appropriation and is available for 3
complete fiscal years from the beginning of this bill's fiscal year.
After 3 complete fiscal years, any unused balance shall lapse. Money
may also be used for administration of projects from line item
construction projects for which the department is an agent, but these
transfers shall not exceed 1.5% of the amount appropriated for each
individual project. Any unused balance from these projects shall not
lapse at the end of each fiscal year, but shall carry over into
succeeding fiscal years to be used for the purpose authorized. The
department shall submit to the appropriations committees, JCOS, and the
fiscal agencies a report of these transfers at the end of each fiscal
year.
(2) Except as provided in subsection (1) and section 244(1) of the
management and budget act, 1984 PA 431, MCL 18.1244, an expenditure
shall not be made for salaries and wages from any appropriation in
section 101.
Sec. 308. A state agency or university shall take steps necessary
to make available federal and other money indicated in this bill, to
make available federal or other money that may become available for the
purposes for which appropriations are made in this bill, and to use any
part or all of the appropriations to meet matching requirements that are
considered to be in the best interest of this state. However, the
purpose, scope, and total estimated cost of a project shall not be
altered to meet the matching requirements.
Sec. 309. (1) The director shall allocate lump-sum appropriations
made in this bill for remodeling and addition, special maintenance,
major special maintenance, energy conservation, demolition, ICF/MR,
air-conditioning, and fire protection projects. The director shall
allocate other lump sums, in order of program priority and need of the
various state agencies or as otherwise based on actual building
inspection reports by regulatory agencies. The director may award or
approve the award of suitable professional services and construction
contracts to study, plan, construct, and equip the projects authorized.
Construction contracts approved by the director shall be awarded to the
lowest acceptable bidders after being advertised publicly. A project
authorized from a lump-sum appropriation has 3 fiscal years from the
beginning of this bill's fiscal year for the award of contracts after
which any unencumbered balance of the appropriation or of any
allocations made to a project from the appropriation shall revert to the
fund from which it was appropriated. For purposes of this subsection, a
balance for a project shall not be considered encumbered unless the
project is bid.
(2) Any remaining balances from allocations made in this section
lapse to the fund from which it was appropriated pursuant to the lapsing
of lump sums as provided in the management and budget act, 1984 PA 431,
MCL 18.1101 to 18.1594.
(3) Before August 15, 1999, the department shall submit a report to
the JCOS and the fiscal agencies indicating the total cost and status of
all lump-sum projects funded under this bill and any previous bill that
have been designated as proposed, designed, bid, under construction, or
completed within the current fiscal year.
(4) A planning project or construction project appropriated for the
airport program shall be considered the same as a capital outlay account
and shall be subject to the requirements and restrictions stated in this
bill relative to all capital outlay accounts for construction unless
otherwise expressly provided. This subsection does not apply to an
operating account otherwise established by law. . . . . . Sec. 310. (1)
The department shall provide the JCOS and the fiscal agencies with
reports as considered necessary relative to the status of each planning
or construction project financed by the state building authority, by
this bill, or by previous acts.
(2) Before August 15, 1999, the department shall report to the JCOS
and the fiscal agencies for each construction project other than lump
sums all of the following:
(a) The appropriation number and name of each construction project.
(b) The balance remaining in each appropriation.
(c) The date of the last expenditure from the appropriation.
(d) The anticipated date of occupancy if the project is under
construction.
(e) The appropriations history for the project.
(f) The professional service contractor.
(g) The amount of a project financed with federal funds.
(h) The amount of a project financed through the state building
authority.
(i) The total authorized cost for the project and the state
authorized share if different than the total.
(3) Before August 15, 1999, the department shall report the
following for each project by a state agency, university, or community
college that is authorized for planning and design but is not yet
authorized for construction:
(a) The name of the project and appropriation number.
(b) Whether a program statement is approved.
(c) Whether schematics are approved by the department.
(d) Whether preliminary plans are approved by the department. (e) The name of the professional service contractor.
(4) As used in this section, "project" includes appropriation line
items made for purchase of real estate.
Sec. 311. (1) This section applies only to projects for community
colleges.
(2) State support is directed towards the remodeling and additions,
special maintenance, or construction of certain community college
buildings. The community college shall obtain or provide for site
acquisition and initial main utility installation to operate the
facility. Funding shall be comprised of local and state shares, and the
state share shall include 50% of any federal money awarded for projects
appropriated in this bill.
(4) Upon completion of the final planning documents for the project
and before bidding, the community college shall submit final planning
documents to the department for its review, approval, and certification
that the purpose and scope described in the final planning documents do
in fact correlate with and reflect the approved program statement and
preliminary planning documents.
(5) An expenditure under this bill is authorized when the release of
the appropriation is approved by the board upon the recommendation of
the director. The director may recommend to the board the release of
any appropriation only after the director is assured that the legal
entity operating the community college to which the appropriation is
made has complied with this bill and has matched the amounts
appropriated as required by this bill, and the director has received a
certified report of the advertised competitive bids for the project and
the proposed budget based on the amounts of the lowest acceptable bids.
A release of funds shall not exceed 50% of the total cost of planning
and construction of any project, or of any campus master plan. Further
planning and construction of a project authorized by this bill shall be
in accordance with the purpose and scope as defined and delineated in
the approved program statements and preliminary planning documents.
This bill is applicable to all projects for which planning
appropriations were made in previous bills.
(6) The community colleges shall take the steps necessary to secure
available federal construction and equipment money for projects funded
for construction in this bill if an application was not previously made.
If there is a reasonable expectation that a prior year unfunded
application may receive federal money in a subsequent year, the college
shall take whatever action necessary to keep the application active. If
federal money is received, the state share shall be adjusted accordingly
as provided by this bill.
(7) Not more than 50% of a capital outlay project for a community
college shall be appropriated from state and federal funds.
Sec. 312. If matching revenues are received in an amount less than
the appropriations contained in this bill, the state funds of the
appropriation shall be reduced in proportion to the amount of matching
revenue received.
Sec. 313. (1) Subject to the provisions of section 242 of the
management and budget bill, 1984 PA 431, MCL 18.1242, and upon the
approval of the state building authority, the department may expend from
the general fund of the state during the fiscal year ending September
30, 1999 an amount to meet the cash flow requirements of those state
building authority projects solely for lease to a state agency
identified in both section 101 and this section, and for which state
building authority bonds or notes have not been issued, and for the sole
acquisition by the state building authority of equipment and furnishings
for lease to a state agency as permitted by 1964 PA 183, MCL 830.411 to
830.425, for which the issuance of bonds or notes is authorized by a
legislative concurrent resolution that is effective for the fiscal year
ending September 30, 1999. Any general fund advances for which state
building authority bonds have not been issued shall bear an interest
cost to the state building authority at a rate not to exceed that earned
by the state treasurer's common cash fund during the period in which the
advances are outstanding and are repaid to the general fund of the
state.
(2) Upon sale of bonds or notes for the projects or for equipment as
authorized by legislative concurrent resolution, and in this section,
the state building authority shall credit the general fund of the state
an amount equal to that expended from the general fund plus interest, if
any, as defined in this section.
(3) For state building authority projects for which bonds or notes
have been issued and upon the request of the state building authority,
the state treasurer shall make advances without interest from the
general fund as necessary to meet cash flow requirements for the
projects which advances shall be reimbursed by the state building
authority when the investments earmarked for the financing of the
projects mature.
(4) In the event that a project is terminated after final design is
complete, advances made on behalf of the state building authority for
the costs of final design shall be repaid to the general fund in a
manner recommended by the director and approved by the JCOS.
(5) Before December 1, 1999, the department shall provide a report
to the JCOS on the status of any consent order outlining the problem
statement, the administrative activities to correct the problem, the
total estimated cost as compared to any established total authorized
cost, and the current and future funding obligations and sources. Any
change in the purpose and scope of a consent order requires JCOS
approval as required by section 246 of the management and budget act,
1984 PA 431, MCL 18.1246.
Sec. 314. (1) State building authority funding to finance
construction or renovation of a facility that collects revenue in excess
of money required for the operation of that facility shall not be
released to a university or community college unless the institution
agrees to reimburse that excess revenue to the state building authority.
The excess revenue shall be credited to the general fund to offset rent
obligations associated with the retirement of bonds issued for that
facility. The auditor general shall annually identify and present an
audit of those facilities that are subject to this section. Costs
associated with the administration of the audit shall be charged against
money recovered pursuant to this section. . . . . . . . (2) As used in
this section, "revenue" includes state appropria- tions, facility
opening money, other state aid, indirect cost reimbursement, and other
revenue generated by the activities of the facility.
Sec. 315. The director may provide that state buildings on state-
owned land be demolished when it is determined to be in the best
interest of the state due to health and safety concerns or major
disrepair.
Sec. 316. (1) The department may expend from the lump-sum special
maintenance account amounts necessary to demolish any building that is
specifically authorized to be demolished.
(2) Before July 15, 1999, each state agency, community college, and
university shall report each year to the department and to JCOS the
status of and planned schedule for demolition projects already
authorized but not yet started, the estimated cost of the projects, and
the anticipated sources of financing of the projects.
Sec. 317. (1) If a capital outlay appropriation is contained in a
public act that was not reviewed by the JCOS during the legislative
process, the director shall notify the JCOS of an expenditure of that
capital outlay appropriation not less than 60 days before the
expenditure.
(2) For the purposes of this section, "capital outlay appropriation"
means an appropriation that provides for the construction, renovation,
or repair of a capital facility or acquisition or development of land
and that is normally reviewed by the JCOS.
Sec. 318. From a capital outlay appropriation authorizing the
completion of final plans and start of construction, or an appropriation
to complete plans and construction, the department shall reimburse the
lump-sum planning account an amount equal to the releases made from the
lump-sum planning account for studies, schematic plans, or preliminary
plans for that project, after the JCOS has approved the project for
final planning and start or completion of construction. This section
only applies to new construction projects authorized for start of
construction for the fiscal year beginning after October 1, 1988.
Sec. 319. (1) If the amount appropriated in section 101 for state
building authority rent is not sufficient to pay the rent obligations
and insurance premiums and deductibles identified in subsection (2) for
state building authority projects, there is appropriated from the
general fund of the state the amount necessary to pay such obligations.
(2) The state building authority rent appropriations in section 101
may also be expended for the payment of required premiums for insurance
on facilities owned by the state building authority or payment of costs
that may be incurred as the result of any deductible provisions in such
insurance policies.
Sec. 320. The department shall provide the JCOS and the fiscal
agencies a report, 15 days after the reporting date, relative to the
status of construction projects associated with state building authority
bonds on March 31 and September 30 of each year, or 30 days after a
refinancing or restructuring bond issue is sold. The report shall
include, but is not limited to, the following:
(a) A list of all completed construction projects for which state
building authority bonds have been sold, and which bonds are currently
active.
(b) A list of all projects under construction for which sale of
state building authority bonds are pending.
(c) A list of all projects authorized for construction or identified
in an appropriations bill for which approval of schematic/preliminary
plans or total authorized cost is pending that have state building
authority bonds identified as a source of financing.
Sec. 321. The University of Michigan shall take the necessary
actions to ensure that eligible interest reimbursements from medicare
and medicaid programs are made available to the state to satisfy part of
the amount appropriated for the University of Michigan adult general
hospital facility rent appropriation of $27,917,000.00 contained within
the state building authority rent appropriation in section 101. To the
extent of a difference between the estimated and actual amount received,
there is appropriated from the general fund of the state the amounts
necessary to satisfy the hospital rental requirements of the state
building authority's 1986 revenue refunding bonds, series I. To the
extent payments made to the state by the University of Michigan are
required to be reimbursed pursuant to the agreement with the University
of Michigan, there is appropriated from the general fund the amount
necessary for such reimbursement.
Sec. 322. If the JCOS approves, the department, for purposes of
administrative and fiscal efficiency, may consolidate or discontinue
federal surplus property warehouses administered pursuant to 1961 PA
139, MCL 18.251 to 18.261.
Sec. 323. (1) Before money is released for the construction of a
capital outlay project costing over $1,000,000.00, at the request of the
JCOS, the department shall submit to the JCOS, with preliminary planning
documents, a detailed comparative cost analysis. The cost analysis
shall include a comparison of the financial and other benefits of
construction, financing, operation, and maintenance of the proposed
facility between all of the following:
(a) The state.
(b) The private sector.
(c) A combination of the state and the private sector.
(d) A lease agreement.
(2) If the department's recommendation for financing is inconsistent
with the findings of the comparative cost analysis, the department shall
present written documentation to the JCOS outlining the rationale for
the recommendation.
(3) For purposes of this section, "capital outlay project" means a
construction project requiring JCOS approval including, but not limited
to, a general office facility, special use facility, warehouse,
institutional facility, or utility system designed for use by a state
agency or university. Capital outlay project does not include a special
maintenance and remodeling project, grant-in-aid project, prison
facility, legislative facility, judicial facility, community college
facility, or self-liquidating facility constructed by a university.
Sec. 324. Pursuant to department policy, state agencies may expend
not more than $1,000,000.00 from their operating budget for special
maintenance purposes.
(2) Expenditures from operating budgets for special maintenance or
other capital outlay purposes greater than $1,000,000.00 are prohibited
unless appropriated by the legislature.
Sec. 325. (1) The department shall provide the JCOS and the fiscal
agencies a report, 15 days after the reporting date, of privately-owned
leased space by state agencies, by March 31 and September 30 of each
year, consisting of the following:
(a) Department.
(b) Agency division and leased number.
(c) Building location (address and city).
(d) Type of building.
(e) County.
(f) Name and address of lessor.
(g) Square footage and net square footage rate.
(h) Monthly and annual cost.
(i) Date lease started and expires.
(j) Options and services.
(2) The lease report shall be summarized for office space, group
homes, and other space for the Lansing area and statewide, except the
Lansing area.
Sec. 326. Money received for reimbursement from the Michigan
underground storage tank financial assurance fund for environmental
cleanup at state facilities shall be deposited in the environmental
cleanup account established in fiscal year 1992-93.
Sec. 327. (1) The director may require that community colleges and
universities that have an authorized project submit documentation
regarding the project match and governing board approval of the
authorized project.
(2) If the documentation required by the director under subsection
(1) is not submitted, or does not adequately authenticate the
availability of the project match or board approval of the authorized
project, the authorization may terminate. The authorization terminates
30 days after the director notifies the JCOS of the intent to terminate
the project unless the JCOS convenes to extend the authorization.
Sec. 328. (1) The state building authority, on behalf of the state,
with the approval of the board, for the purpose of providing office and
warehouse space for state agencies, may acquire for not more than the
market value, subject to an independent fee appraisal, including
estimated real estate taxes, various lease projects which contain
purchase options in an aggregate cost not to exceed $45,000,000.00. The
state building authority is also authorized to pay any ancillary costs,
other than the market value, that the state is required to pay under an
option to purchase.
(2) All documents regarding the acquisition of the property
described in subsection (1) shall be approved by the attorney general. (3) The acquisition and subsequent conveyance to the state building
authority shall conform to the provisions of 1964 PA 183, M.C.L. 830.411
to 830.425.
(4) Upon completion of the purchase of the grand tower, the
authorization for the acquisition of various lease projects that contain
purchase options will be renewed at $35,000,000.00.
DEPARTMENT OF NATURAL RESOURCES
Sec. 401. The appropriation made in this bill for the harbors and
docks program is for the purpose of participating with the federal
government and assisting political entities and subdivisions of this
state in the construction and improvement of recreational boating
facilities within this state. Subject to the approval of the board,
this money shall be allocated by the department of natural resources to
the federal government, or to the political entities or local units of
government involved in the particular projects. An allocation shall not
exceed the state portion as listed with each project description. The
department of natural resources shall take the steps necessary to match
federal money available for the construction and improvement of
recreational boating facilities within this state, and to meet
requirements of the federal government.
Sec. 402. (1) Before August 15, 1999, the department of natural
resources shall report each year to the JCOS the status of each project
that received an appropriation in any capital outlay bill, if the
project is either not completed or has a balance remaining in its
account. The report shall be in the same form and contain the
information as required under section 310. The report shall be
separated into the following areas, by fund sources:
(a) Waterways projects.
(b) Urban recreation projects.
(c) State park projects.
(d) Wildlife and fisheries projects.
(e) Other projects.
STATE TRANSPORTATION DEPARTMENT
Sec. 501. (1) From federal-state-local project appropriations
contained in section 101 for the purpose of assisting political entities
and subdivisions of this state in the construction and improvement of
publicly used airports and landing fields within this state, the state
transportation department may permit the award of contracts on behalf of
units of local government for the authorized locations not to exceed the
indicated amounts, of which the state allocated portion shall not exceed
the amount appropriated in section 101.
(2) Political entities and subdivisions shall provide not less than
5% of the cost of any project under this section. State money shall not
be allocated until local money is allocated, and state money for any 1
project shall not exceed 1/3 of the total appropriation in section 101
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 bill 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.
(4) From appropriations contained in section 101 for airport
improvement programs, $4,300,000.00 of the state funds shall be used as
state resources for state funded components of the comprehensive
northwest airlines midfield terminal project. The $4,300,000.00 of
state funds shall be subject to audit by the auditor general.
Sec. 502. On or before November 15 of each year, the state
transportation department shall report to the JCOS the projects funded
from the previous fiscal year capital outlay bill and the proposed
projects with the estimated dollars for the current fiscal year. If
there has to be a delay in reporting, the department shall notify JCOS
in writing of the date the report can be received.
Sec. 503. An aeronautics project proposed for funding with
federal-state-local appropriations contained in section 101 that
includes acquisition of an airport facility from a private owner or
political subdivision for operation by the state or by a political
subdivision requires line-item authorization in an appropriations bill
and is not fundable with appropriations from the federal/local airport
discretionary contingencies account.
Sec. 504. (1) Before August 15, 1999, the state transportation
department shall report each year to the JCOS the status of each project
that received an appropriation in any capital outlay bill, if the
project is either not completed or has a balance remaining in its
account. The report shall be in the same form and contain the
information as required under section 310. The report shall be
separated into all the following areas:
(a) Highway programs, including each of the following:
(i) Lump sums.
(ii) Construction.
(b) Airport programs, including each of the following:
(i) Lump sums.
(ii) Construction.
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