HOUSE BILL No. 4297
February 18, 1999, Introduced by Reps. Jellema, Toy, Pappageorge, Pumford, Mead, Kukuk, Caul, Godchaux, Byl, Geiger, Mortimer, Jansen and Scranton and referred to the Committee on Appropriations.
A bill to make appropriations for a capital outlay program for the fiscal year ending September 30, 2000; to implement the appropriations within the budgetary process; 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:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for certain capital outlay projects at the various state agencies and community colleges for the fiscal year ending September 30, 2000, from the following funds:
CAPITAL OUTLAY
APPROPRIATIONS SUMMARY:
GROSS APPROPRIATION $ 416,022,381
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 5,500,000
ADJUSTED GROSS APPROPRIATION $ 410,522,381
Federal revenues:
Total federal revenues 78,599,550
Special revenue funds:
Total local funds 10,011,600
Total private funds 0
Total other state restricted revenues 44,600,100
State general fund/general purpose $ 277,311,131
Sec. 102. DEPARTMENT OF MANAGEMENT AND BUDGET
Lump sum projects:
Major special maintenance and remodeling
for state agencies $ 5,500,000
Major special maintenance and remodeling
for department of community health special
maintenance, remodeling, and addition
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 management and budget 800,000
Fort Mackinac wall restoration for department
of natural resources 2,068,000
Detroit institute of arts 5,000,000
Grand Rapids convention center 5,000,000
GROSS APPROPRIATION $ 23,368,000
Appropriated from:
Interdepartmental grant revenues:
IDG from building occupancy charges 5,500,000
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 $ 15,868,000
Sec. 103. DEPARTMENT OF MILITARY AFFAIRS
Lump sum projects:
Department of military affairs remodeling,
additions, and special maintenance projects $ 3,255,000
Fort Custer armory 400,000
Alpena armory 1,000,000
Land acquisitions and appraisals statewide 150,000
GROSS APPROPRIATION $ 4,805,000
Appropriated from:
Federal revenues:
DOD, department of the army, national guard 3,318,750
Special revenue funds:
Armory construction fund 1,060,000
State general fund/general purpose $ 426,250
Sec. 104. DEPARTMENT OF NATURAL RESOURCES
(1) STATE PARKS:
State parks remodeling and additions $ 2,500,000
GROSS APPROPRIATION $ 2,500,000
Appropriated from:
Special revenue funds:
Park improvement fund 1,500,000
State park endowment fund 1,000,000
State general fund/general purpose $ 0
(2) WATERWAYS BOATING PROGRAM:
Recreational boating repair, replacement,
maintenance and development $ 7,300,000
Boating program, state harbors 2,930,000
Boating program, harbor projects, grants-in-aid 6,490,000
Boating program, boating access sites, grants-
in-aid 1,550,100
GROSS APPROPRIATION $ 18,270,100
Appropriated from:
Federal revenues:
DOI, U.S. fish and wildlife service, Dingell-
Johnson 1,000,000
Special revenue funds:
Michigan state waterways fund 16,470,100
Harbor development fund 800,000
State general fund/general purpose $ 0
(3) REAL ESTATE:
Farmland and open space development acquisition $ 5,000,000
GROSS APPROPRIATION $ 5,000,000
Appropriated from:
Special revenue funds:
Farmland and open space withdrawal fees 5,000,000
State general fund/general purpose $ 0
Sec. 105. DEPARTMENT OF TRANSPORTATION
(1) STATE TRUNKLINE FUND
Institutional agency roads $ 750,000
New construction - various locations 5,735,000
Remodeling and additions - various locations 3,465,000
GROSS APPROPRIATION $ 9,950,000
Appropriated from:
Special revenue funds:
State trunkline fund 9,950,000
State general fund/general purpose $ 0
(2) AERONAUTICS FUND: AERONAUTICS PROGRAMS
Airport improvement programs $ 99,492,400
GROSS APPROPRIATION $ 99,492,400
Appropriated from:
Federal revenues:
DOT-federal aviation administration 70,580,800
Special revenue funds:
Local aeronautics match 10,011,600
State aeronautics fund 4,000,000
State general fund/general purpose $ 14,900,000
Sec. 106. STATE BUILDING AUTHORITY RENT
State building authority rent - state agencies $ 33,629,457
State building authority rent - department of
corrections 96,435,569
State building authority rent - universities 108,030,433
State building authority rent - community
colleges 14,541,422
GROSS APPROPRIATION $ 252,636,881
Appropriated from:
Federal revenues:
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 $ 246,116,881
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending under part 1 for fiscal year 1999-2000 is $321,911,231.00 and state appropriations to be paid to local units of government are as follows:
CAPITAL OUTLAY
Department of natural resources - waterways . . . . .$ 7,040,100
State transportation department - state
aeronautics program 18,900,000
TOTAL CAPITAL OUTLAY $ 25,940,100
(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. 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.
Sec. 203. As used in this bill:
(a) "ADA" means the Americans with disabilities act.
(b) "Board" means the state administrative board.
(c) "Community college" does not include a state agency or university.
(d) "Department" means the Michigan department of management and budget.
(e) "Director" means the director of the department of management and budget.
(f) "DOD" means the United States department of defense.
(g) "DOI" means the United States department of interior.
(h) "Fiscal agencies" means the senate fiscal agency and the house fiscal agency.
(i) "HHS-HCFA" means the United States department of health and human services, health care financing administration.
(j) "ICF/MR" means intermediate care facilities for the mentally retarded.
(k) "IDG" means interdepartmental grant.
(l) "JCOS" means the joint capital outlay subcommittee of the appropriations committees.
(m) "MDOT" means the Michigan department of transportation.
(n) "MIOSHA" means the Michigan occupational safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094.
(o) "Self-liquidating project" means a project constructed by a community college or university with money raised through the use of a debt instrument or other fund sources including, but not limited to, gifts, grants, federal funds, or institutional sources, which is expected to generate revenues to amortize the loan. A self- liquidating project may or may not be a self-supporting project. Examples of a self-liquidating project include dormitories, parking facilities, and stadia.
(p) "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.
(q) "SEMCOG" means the southeast Michigan council of governments.
(r) "State agency" means an agency of state government. State agency does not include a community college or university.
(s) "State building authority" means the authority created under 1964 PA 183, MCL 830.411 to 830.425.
(t) "University" means a 4-year university supported by the state. University does not include a community college or a state agency.
(u) "Utility system" means a utility supply or distribution system, or a combination utility supply and distribution system.
CAPITAL OUTLAY PROCESSES, PROCEDURES, AND REPORTS
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 1998 PA 515 are exempt from the requirements contained in section 242 of the management and budget act, 413, 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 institutions funds for college and university projects to provide for professionally developed program statements and schematic plans.
Sec. 303. (1) A capital outlay project shall be funded by an appropriation for the purpose provided in a capital outlay appropriation act and must conform to the capital outlay processes and procedures as described in sections 304 and 305 and this section. Capital outlay projects shall not be funded from operating accounts unless approved by the department and the JCOS.
(2) Program statements and schematic planning documents shall be reviewed by the department and, when completed, shall be submitted to the JCOS as either approved or not approved.
(3) Upon review and approval by the JCOS, the JCOS and the legislature may authorize the project for final design and construction with a line-item appropriation in an appropriation bill.
(4) Preliminary plans shall be submitted to the department for review and approval. The department shall review and approve final plans to be prepared for bidding. Bid results shall be submitted to the JCOS.
(5) The department shall provide for review and oversight of capital outlay projects financed either in total or in part by the state building authority pursuant to the provisions of sections 304 and 305.
Sec. 304. (1) For state agency capital outlay projects or facilities, the department is responsible for development, oversight, review, and approval of program statements, studies, designs, plans, management, specifications, contract documents, construction management, and construction, relative to the acquisition, construction, lease purchase, improvement, demolition, or other capital outlay projects for state agencies for which an appropriation or other authorization has been made.
(2) The department shall approve the award, selection, and employment of architects, engineers, construction managers, and other design or construction professional services contractors, subject to rules of the department of civil service, to do all of the following:
(a) Prepare program statements, studies, designs, plans, and specifications for the construction of, repairing of, making additions to, remodeling or demolition of, lease purchase of, or acquisition of state facilities.
(b) To administer construction work, including resident inspectors, on-site management, and supervision of construction projects.
(3) The department may obtain independent testing services to provide quality control of work performed on facilities.
(4) Prior to state building authority financing, the department shall provide final approval of the capital outlay project to ensure compliance with the authorized program, plans, and specifications.
Sec. 305. (1) This section pertains to capital outlay projects for community colleges and universities.
(2) The department shall review documents associated with community college and university capital outlay projects for which an appropriation or other authorization has been made.
(3) The department shall provide architectural and engineering review of documents including designs, plans, and changes at each stage of the project to ensure that the project or facility is in compliance with approved program, appropriation, and capital outlay requirements.
(4) The department shall review the selection of architects, engineers, construction managers, and other design or construction professional service contractors.
(5) The department shall do all of the following:
(a) Review the construction bid.
(b) Review monthly reports to ensure appropriate construction progress, evaluate change orders, and watch for potential problems.
(c) Respond to college and university requests for assistance on the capital outlay process, contractor issues, and other capital outlay related issues.
(d) Provide for field checks and audits throughout the project in order to meet the trustee requirements of the state building authority.
(6) The department may charge a fee for the services described in this section at a rate not to exceed actual costs.
(7) In the event that a college or university agrees to have the department provide for the complete administration of a capital outlay project, then the provisions of section 304 apply to the project.
(8) Prior to state building authority financing, the department shall provide final review of the capital outlay project to ensure compliance with the authorized program, plans, and specifications.
Sec. 306. (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 act, 1984 PA 431, MCL 18.1101 to 18.1594, and an appropriations act.
(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. 307. (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, 2000, 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 account number and name of each construction project.
(b) The balance remaining in each account.
(c) The date of the last expenditure from the account.
(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, 2000, the department shall report the following for each project by a state agency, university, or community college that is authorized for planning but is not yet authorized for construction:
(a) The name of the project and account 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. 308. (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. 309. 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.
Sec. 310. A state agency, college, 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.
USE AND FINANCE STATEMENTS
Sec. 401. (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 or remodeling 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.
Sec. 402. Universities, community colleges, and state agencies shall report to the department and to the JCOS on a quarterly basis all projects including major special maintenance, remodeling, or additions costing between $500,000.00 and $1,000,000.00.
Sec. 403. A statement of a proposed facility's operating cost shall be included with the facility's program statement and planning documents when the plans are presented to JCOS for approval.
LUMP SUMS AND SPECIAL MAINTENANCE
Sec. 501. (1) The director shall allocate lump-sum appropriations made in this bill for remodeling, additions, 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.
(2) Any remaining balance from allocations made in this section shall 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, 2000, 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 act that have been designated as proposed, designed, bid, under construction, or completed within the current fiscal year.
Sec. 502. (1) 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.
(2) The department may expend from the lump-sum special maintenance account amounts necessary to demolish any building that is specifically authorized to be demolished.
(3) Before July 15, 2000, each state agency, community college, and university shall report each year to the department 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. 503. (1) Pursuant to department policy, state agencies may expend not more than $1,000,000.00 from their operating budget for special maintenance, remodeling, or additions purposes. In nonroutine emergency cases, cases where the health and safety of the public, state employees, or residents in state facilities are threatened, as determined by the department, the state agencies may expend not more than $1,500,000.00 from their operating budgets for special maintenance purposes. The department shall report to the JCOS on a quarterly basis each time operating funds are used for special maintenance purposes in an amount over $1,000,000.00.
(2) Expenditures from operating budgets for special maintenance, remodeling, or additions accounts or lump-sum maintenance accounts greater than $1,000,000.00 are prohibited unless specifically appropriated by the legislature.
Sec. 504. (1) The resources appropriated under section 102 for the Detroit institute of arts and the Grand Rapids convention center shall be expended only if those funds are matched by funds from other sources in a ratio of two dollars from other sources for each one dollar of section 102 funds.
(2) Resources appropriated under section 102 for the Detroit institute of arts and the Grand Rapids convention center shall be the first payments toward a total commitment of $40,000,000 in state funds for each institution.
STATE BUILDING AUTHORITY
Sec. 601. (1) Subject to the provisions of section 242 of the management and budget act, 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, 2000 an amount to meet the cash flow requirements of those state building authority projects solely for lease to a state agency identified in both part 1 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 a fiscal year ending September 30, 2000. 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 identified in part 1 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 identified in part 1 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.
Sec. 602. (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 appropriations, facility opening money, other state aid, indirect cost reimbursement, and other revenue generated by the activities of the facility.
Sec. 603. (1) The state building authority rent appropriations in part 1 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.
(2) If the amount appropriated in part 1 for state building authority rent is not sufficient to pay the rent obligations and insurance premiums and deductibles identified in subsection (1) for state building authority projects, there is appropriated from the general fund of the state the amount necessary to pay such obligations.
Sec. 604. 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 act 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. 605. 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 part 1. 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 1. 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. 606. (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, MCL 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.
COLLEGES AND UNIVERSITIES
Sec. 701. (1) This section applies only to projects for community colleges.
(2) State support is directed towards the remodeling, 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. Not more than 50% of a capital outlay project, not including a lump-sum special maintenance project, remodeling, or addition project, for a community college shall be appropriated from state and federal funds.
(3) 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 in part 1 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. A release of funds in part 1 shall not exceed 50% of the total cost of planning and construction of any project, not including lump-sum remodeling, additions, and special maintenance. Further planning and construction of a project authorized by this bill or applicable sections of the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, shall be in accordance with the purpose and scope as defined and delineated in the approved program statements and planning documents. This bill is applicable to all projects for which planning appropriations were made in previous acts.
(4) The community college 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.
Sec. 702. 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. 703. Subject to section 701, a consortium comprised of a community college and a university may receive up to 100% of the total project capital cost allocated to the participating university if all of the following criteria are met and approved by the JCOS and the department:
(a) The university and the community college have entered into a binding consortium joint use agreement for use and maintenance of the facility and for the pro rata offset of the community college's and university's future state appropriations equal to the straight-line undepreciated balance of the university's appropriated capital cost upon termination of the agreement prior to the minimum term requirements in subsection (b). Any appropriation offset required by this section shall be structured in a manner so as not to impair the rating or repayment of the local funding mechanism.
(b) The joint use agreement is for a term of not less than 15 years or the term of the local funding mechanism, whichever is longer.
(c) Articulation agreements have been entered into that provide for maximum credit transfer and efficient program completion.
(d) In addition to lower division offerings, the facility will accommodate only upper division first professional degree programs not already offered by a university currently serving the area.
(e) There is recognized community and industrial support for the consortium facility.
Sec. 704. (1) The director may require that community colleges and universities that have an authorized project listed in part 1 submit documentation regarding the project match and governing board approval of the authorized project within 60 days after the beginning of the fiscal year.
(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.
DEPARTMENT OF MANAGEMENT AND BUDGET
Sec. 801. 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. 802. (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, excepting the Lansing area.
DEPARTMENT OF NATURAL RESOURCES
Sec. 901. The $7,300,000.00 in resources appropriated in section 104(2) for the recreational boating repair, replacement, maintenance and development line - item within the department of natural resources waterways program, shall be allocated as follows:
(a) $5,700,000.00 for replacement, maintenance and repairs, and state development
(b) $600,000.00 for engineering studies
(c) $1,000,000.00 for land acquisition
Sec. 902. The $2,930,000.00 in resources appropriated in section 104(2) for the boating program, state harbors line-item within the department of natural resources waterways program, shall be allocated for support of the following projects:
(a) East Tawas harbor - mooring restroom building
(b) Copper Harbor state harbor - Keweenaw county - expansion
(c) Cheboygan lock and dam - Cheboygan county - ADA improvements
(d) Presque Isle state harbor - Presque Isle county - fuel system upgrades
(e) Fayette state harbor - Delta county - refurbish pier
(f) Little Lake state harbor - Luce county - dredging
(g) Hammond Bay state harbor - Presque Isle county - building/utility upgrade.
Sec. 903. The $6,490,000.00 in resources appropriated in section 104(2) for the boating program, harbor projects, grants-in-aid line-item within the department of natural resources waterways program, shall be allocated for support of the following projects:
(a) Engineering studies and project development
(b) Village of Elk Rapids - Antrim county - breakwater upgrade
(c) City of St. Joseph - Berrien county - mooring expansion
(d) City of Escanaba - Delta county - restroom building
(e) Detroit - Wayne county - Erma Henderson marina upgrade
(f) St. Ignace - Mackinac county - marina expansion
(g) Rogers City - Presque Isle county - breakwater and east wall repair
(h) L'anse - Baraga county - harbor docking and showers
(i) Naubinway - Mackinac county - marina upgrade
Sec. 904. The $1,550,100.00 in resources appropriated in section 104(2) for the boating program, boating access sites, grants-in-aid line-item within the department of natural resources waterways program, shall be allocated for support of the following projects:
(a) Engineering studies and project development
(b) Suttons Bay - Leelanau county - new boating access sites at north park.
(c) Caledonia township - Alcona county - Hubbard Lake, boating access site paving.
(d) Montague - White lake - Muskegon county - boating access site - ramp/parking expansion.
(e) Bay county - Independence park launch
(f) City of St. Ignace - Mackinac county - Moran bay
(g) Small grants program - various counties
Sec. 905. 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. 906. (1) Before August 15, 2000, 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 act, 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 307. 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.
(2) A project request for reauthorization by the department of natural resources shall also be identified within the report required by subsection (1). These reauthorization requests shall identify the subsection number of section 248 of the management and budget act, 1984 PA 431, MCL 18.1248, that provides the reason and justification for the requested reauthorization.
(3) A project shall be reauthorized if approved by the JCOS after review by the department.
STATE TRANSPORTATION DEPARTMENT
Sec. 1001. The $5,735,000.00 in state trunkline fund resources appropriated in section 105(1) for new construction - various locations within the department of transportation, shall be allocated for support of the following projects:
(a) Covered salt storage facilities and brine run off control systems, various contract agencies.
(b) Construct or replace salt storage buildings at Michigan department of transportation maintenance garage facilities, various locations.
(c) Equipment storage buildings, various statewide locations
(d) Construct, replace project/regional offices, various statewide locations.
(e) Purchase property, various statewide locations.
Sec. 1002. The $3,465,000.00 in state trunkline fund resources appropriated in section 105(1) for the remodeling and additions - various locations line-item within the department of transportation, shall be allocated for support of the following projects:
(a) MIOSHA projects, various statewide locations.
(b) Installation and/or replacement of hydraulic floor hoists, various maintenance garage locations.
(c) ADA modifications - Michigan department of transportation facilities at various statewide locations.
(d) Energy saving modifications, and upgrade lighting and electrical systems at Michigan department of transportation facilities, various statewide locations.
(e) Rest rooms and lunch rooms modifications, various statewide facilities.
(f) Re-roof Michigan department of transportation facilities, fence Michigan department of transportation properties and install bituminous surfacing/resurfacing, various statewide locations.
(g) Miscellaneous remodeling and additions, emergency maintenance and repair, and minor improvements.
Sec. 1003. (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 shall 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. State money shall not be allocated until local money is allocated, and except as provided in subsection (4) state money for any 1 project shall 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 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 sec. 105(2) for airport improvement programs, $10,200,000.00 of the state general fund shall be used as state resources for state funded components of the comprehensive Northwest airlines midfield terminal project and $4,000,000.00 of the state general fund shall be used for state funded components of the Northwest airlines Willow Run project.
Sec. 1004. 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 act 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. 1005. An aeronautics project proposed for funding with federal-state-local appropriations contained in part 1 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 act and is not fundable with appropriations from the federal/local airport discretionary contingencies account.
Sec. 1006. (1) Before August 15, 2000, the state transportation department shall report each year to the JCOS the status of each project that received an appropriation in any capital outlay act, 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 307. 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.
(2) A project request for reauthorization by the state transportation department shall also be identified within the reports required by subsection (1). These reauthorization requests shall identify the subsection number of section 248 of the management and budget act, 1984 PA 431, MCL 18.1248, that provides the reason and justification for the requested reauthorization.
(3) A project shall be reauthorized if approved by the JCOS after review by the department.
Sec. 1007. 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 section does not apply to an operating account otherwise established by law.
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