-,As Passed Senate,Nov 20, 2002

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5883

                                                                             A bill to amend 1984 PA 431, entitled                                             

"The management and budget act,"                                            

by amending sections 237, 353c, and 358 (MCL 18.1237, 18.1353c,             

and 18.1358), section 237 as amended by 1999 PA 8, section 353c             

as amended by 2001 PA 161, and section 358 as amended by 2000               

PA 189, and by adding section 237b.                                         

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 237.  (1) For state agency capital outlay projects or                  

2   facilities, the department is responsible for development,                  

3   oversight, review, and approval of program statements, studies,             

4   designs, plans, management, specifications, contract documents,             

5   construction management, and construction, relative to the                  

6   acquisition, construction, lease purchase, improvement,                     

7   demolition, or other capital outlay projects for state agencies             

8   for which an appropriation or other authorization has been made.            

1       (2) The department shall approve the award, selection, and                  

2   employment of architects, professional engineers, construction              

3   managers, and other design or construction professional services            

4   contractors, subject to section 237b and rules of the department            

5   of civil service, to do all of the following:                               

6       (a) Prepare program statements, studies, designs, plans, and                

7   specifications for the construction of, repairing of, making                

8   additions to, remodeling or demolition of, lease purchase of, or            

9   acquisition of state facilities.                                            

10      (b) Administer construction work, including resident                        

11  inspectors, on-site management, and supervision of construction             

12  projects.                                                                   

13      (3) The department may obtain independent testing services to               

14  provide quality control of work performed on facilities.                    

15      (4) Prior to state building authority financing, the                        

16  department shall provide final approval of the capital outlay               

17  project to ensure compliance with the authorized program, plans,            

18  and specifications.                                                         

19      (5) The attorney general shall review all standard lease and                

20  lease purchase agreement formats and approve any exceptions to              

21  the standard formats and may assess a fee for legal services                

22  pursuant to an agreement with the department.                               

23  Sec. 237b.  (1) The selection of architects, professional                   

24  engineers, professional surveyors, and qualified firms shall be             

25  based upon the appropriate qualifications of the architect,                 

26  professional engineer, professional surveyor, or qualified firm             

27  for the type of professional service required by the department.            

1       (2) The department shall prepare a written description of the               

2   scope of the proposed services to be used as the basis of                   

3   negotiation, taking into account the estimated value, scope,                

4   complexity, and professional nature of the services to be                   

5   rendered.  Notification of the written description for services             

6   shall be given to architects, professional engineers,                       

7   professional surveyors, or qualified firms under procedures                 

8   established by the department.  The department shall not                    

9   establish a maximum overhead rate or other payment formula                  

10  designed to eliminate architects, professional engineers,                   

11  professional surveyors, or qualified firms from contention or to            

12  restrict competition.                                                       

13      (3) Upon receiving proposals for services from an architect,                

14  professional engineer, professional surveyor, or qualified firm             

15  made to the department in response to the written description               

16  made under subsection (2), the department shall select no fewer             

17  than 3 architects, professional engineers, professional                     

18  surveyors, or qualified firms the department determines to be               

19  most qualified to provide services for the project and rank them            

20  in order of qualifications to provide services regarding the                

21  specific request.                                                           

22      (4) The department shall notify in writing the architect,                   

23  professional engineer, professional surveyor, or qualified firm             

24  the department determines most qualified to negotiate a contract            

25  for services for the project at fair and reasonable                         

26  compensation.  The department shall establish procedures for                

27  notifying those it determines as not qualified for the project.             

1   If fewer than 3 architects, professional engineers, professional            

2   surveyors, or qualified firms submit a response to the                      

3   department's proposal, the department may proceed to negotiate a            

4   contract with all those who responded to the department's                   

5   request.                                                                    

6   (5) If the department is unable to negotiate a satisfactory                 

7   contract with the architect, professional engineer, professional            

8   surveyor, or qualified firm that the department has determined as           

9   most qualified, negotiations shall be terminated.  If the                   

10  department is unable to negotiate a satisfactory contract with              

11  the architect, professional engineer, professional surveyor, or             

12  qualified firm it has determined to be the next most qualified to           

13  perform the services for the project, negotiations shall be                 

14  terminated.  If the department is unable to negotiate a                     

15  satisfactory contract with the architect, professional engineer,            

16  professional surveyor, or qualified firm it has determined to be            

17  the next most qualified to perform services for the project,                

18  negotiations shall be terminated.                                           

19      (6) If the department is unable to negotiate a satisfactory                 

20  contract with any of the 3 selected as most qualified, the                  

21  department shall give written notice of those affected, shall               

22  reevaluate the services requested, and shall proceed to determine           

23  the next most qualified architect, professional engineer,                   

24  professional surveyor, or qualified firm following the same                 

25  procedures for notification and negotiation as provided in this             

26  act.                                                                        

27      (7) If a qualified professional company enters into a                       

1   contract with the department, the department shall provide as a             

2   condition in that contract that if the qualified professional               

3   company needs to subcontract or hire an architect, professional             

4   engineer, professional surveyor, or qualified firm under that               

5   contract, the qualified professional company shall select the               

6   architect, professional engineer, professional surveyor, or                 

7   qualified firm in the same manner as the qualified professional             

8   company was selected under this section.                                    

9   (8) As used in this article:                                                

10      (a) "Architect" means that term as defined in section 2001 of               

11  the occupational code, 1980 PA 299, MCL 339.2001.                           

12      (b) "Professional engineer" means that term as defined in                   

13  section 2001 of the occupational code, 1980 PA 299, MCL                     

14  339.2001.                                                                   

15      (c) "Professional surveyor" means that term as defined in                   

16  section 2001 of the occupational code, 1980 PA 299, MCL                     

17  339.2001.                                                                   

18      (d) "Qualified firm" means a firm described in sections 2001                

19  and 2010 of the occupation code, 1980 PA 299, MCL 339.2001 and              

20  339.2010.                                                                   

21      (e) "Qualified professional company" means an architect,                    

22  professional engineer, professional surveyor, or qualified firm             

23  that was selected and has entered into a contract under this                

24  section.

25      Sec. 353c.  (1) For the fiscal year ending September 30, 1995               

26  only, there is appropriated from the fund to the general fund the           

27  sum of $59,500,000.00 to be used to pay the court settlement                

1   amount for the department of natural resources in the matter of             

2   Miller Brothers, et al v State of Michigan, et al (Court of                 

3   Claims docket no. 88-11848-CM).                                             

4       (2) For the fiscal year ending September 30, 1995 only, there               

5   is appropriated from the fund to the general fund the sum of                

6   $875,000.00 to be used to pay the court settlement liquidated               

7   damages for the department of natural resources in the matter of            

8   Miller Brothers, et al v State of Michigan, et al (Court of                 

9   Claims docket no. 88-11848-CM).                                             

10      (3) For the fiscal year ending September 30, 1995 only, there               

11  is appropriated from the fund to the general fund the sum of                

12  $30,000,000.00 to be used to pay the court settlement and                   

13  purchase mineral rights for the department of natural resources             

14  in the matter of Carnagel Oil Associates, et al v State of                  

15  Michigan, et al (Court of Claims docket no. 88-11848-CC).                   

16      (4) For the fiscal year ending September 30, 1995 only, there               

17  is appropriated to the department of natural resources from the             

18  general fund $59,500,000.00.  This appropriation may only be used           

19  to pay the court settlement associated with the matter of Miller            

20  Brothers, et al v State of Michigan, et al (Court of Claims                 

21  docket no. 88-11848-CM).                                                    

22      (5) For the fiscal year ending September 30, 1995 only, there               

23  is appropriated to the department of natural resources from the             

24  general fund $875,000.00.  This appropriation may only be used to           

25  pay the court settlement liquidated damages associated with the             

26  matter of Miller Brothers, et al v State of Michigan, et al

27  (Court of Claims docket no. 88-11848-CM).                                   

1       (6) For the fiscal year ending September 30, 1995 only, there               

2   is appropriated to the department of natural resources from the             

3   general fund $30,000,000.00.  This appropriation may only be used           

4   to pay the court settlement and purchase mineral rights                     

5   associated with the matter of Carnagel Oil Associates, et al v              

6   State of Michigan, et al (Court of Claims docket                            

7   no. 88-11848-CC).  The payment authorized under this subsection             

8   shall be made on or before November 30, 1995.                               

9       (7) It is the intent of the legislature that money                          

10  appropriated from the fund to pay the court settlement and                  

11  liquidated damages associated with the matter of Miller Brothers,           

12  et al v State of Michigan, et al (Court of Claims docket                    

13  no. 88-11848-CM) be repaid to the fund from the Michigan                    

14  strategic fund created in the Michigan strategic fund act, 1984             

15  PA 270, MCL 125.2001 to 125.2093.                                           

16      (8) It is the intent of the legislature that money                          

17  appropriated from the fund to pay the court settlement and                  

18  purchase mineral rights associated with the matter of Carnagel              

19  Oil Associates, et al v State of Michigan, et al (Court of Claims           

20  docket no. 88-11848-CC) be repaid to the fund from the Michigan             

21  strategic fund created in the Michigan strategic fund act, 1984             

22  PA 270, MCL 125.2001 to 125.2093.                                           

23      (9) Following November 13, 1995, if the recipient of the                    

24  $59,500,000.00 appropriation pursuant to subsections (1) and (4)            

25  obtains, by lease, purchase, or otherwise, the mineral rights for           

26  the real property that was the subject of the court settlement              

27  referenced in this section, the state shall seek repayment of               

1   that portion of the $59,500,000.00 settlement that was not                  

2   attributed to the cost of the initial lease or to lawfully                  

3   accrued interest.                                                           

4       (10) For the fiscal year ending September 30, 2001 only,                    

5   there is appropriated from the fund to the general fund the sum             

6   of $77,000,000.00.                                                          

7       (11) For the fiscal year ending September 30, 2001 only, the                

8   state budget director, before the final accounting of state                 

9   revenues and expenditures is completed, shall calculate the                 

10  amount of funds that will be necessary to ensure a zero balance             

11  in the general fund/general purpose state budget at bookclosing.            

12  This calculation shall be made excluding any net general                    

13  fund/general purpose appropriation lapses that occur when the               

14  final accounting of state expenditures is completed.  For                   

15  purposes of this calculation, the closure or reduction of prior             

16  year work projects shall not be considered appropriation lapses.            

17  The state budget director shall provide a report to the house and           

18  senate appropriations committees and the house and senate fiscal            

19  agencies of this calculation as soon as it is completed.  Based             

20  on this calculation, there is appropriated from the fund to the             

21  general fund the amount calculated by the state budget director,            

22  not to exceed $200,000,000.00.                                              

23      (12) For the fiscal year ending September 30, 2002 only,                    

24  there is appropriated from the fund to the general fund the sum             

25  of  $155,000,000.00  $335,000,000.00.                                       

26      (13) In addition to subsection (12), for the fiscal year                    

27  ending September 30, 2002 only,  the state budget director,                 

House Bill No. 5883 as amended November 19, 2002                            

1   before the final accounting of state revenues and expenditures is           

2   completed, shall calculate the amount of funds that will be                 

3   necessary to ensure a zero balance in the school aid fund state             

4   budget at bookclosing.  The state budget director shall provide a           

5   report to the house and senate appropriations committees and the            

6   house and senate fiscal agencies of this calculation as soon as             

7   it is completed.  Based on this calculation,  there is                      

8   appropriated from the fund to the school aid fund the  amount               

9   calculated by the state budget director, not to exceed sum of

10  $350,000,000.00.                                                            

11  (14) For the fiscal year ending September 30, 2003 only,                    

12  there is appropriated from the fund to the general fund the sum             

13  of $207,000,000.00.

14      Sec. 358.  (1) Except as otherwise provided in this section,                

15  the legislature may make an emergency appropriation from the fund           

16  subject to all of the following conditions:                                 

17      (a) The maximum appropriation from the fund for budget                      

18  stabilization as provided in section 352(2) has already been made           

19  for the current fiscal year.                                                

20      (b) The legislature has approved the emergency appropriations               

21  bill by a 2/3 majority vote of the members elected to and serving           

22  in each house.                                                              

23      (c) The emergency appropriations bill becomes law.                          

24      (2) The additional transfer from the fund may be made only                  

25  for the current fiscal year.                                                

26      (3) For  each the fiscal year  , beginning with the fiscal                 

27  year  ending September 30, 2001<<,and>>  ending with  the fiscal year      

House Bill No. 5883 as amended November 19, 2002                            

1   ending September 30,  2016 2002<<and for each fiscal year beginning with the fiscal year ending September 30, 2004 and ending with the fiscal year ending September 30, 2016>>, there is appropriated and                                

2   transferred from the fund to the state trunk line fund                      

3   established under section 11 of 1951 PA 51, MCL 247.661, the sum            

4   of $35,000,000.00.                                                          

5       (4) For the fiscal year ending September 30, 2000, there is                 

6   appropriated and transferred from the fund to the state trunk               

7   line fund established under section 11 of 1951 PA 51,                       

8   MCL 247.661, the sum of $37,100,000.00.                                     

9       (5) For the fiscal year ending September 30, 2000, an amount                

10  equal to the unreserved general fund general purpose balance                

11  transferred to the fund for the fiscal year ending September 30,            

12  2000, but not to exceed $62,900,000.00, is appropriated and                 

13  transferred from the fund to the state trunk line fund                      

14  established under section 11 of 1951 PA 51, MCL 247.661.                    

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