Senate Introduced Bill B01113

SENATE BILL No. 1113

February 13, 2002, Introduced by Senators Bennett and Young and referred to the Committee on Appropriations.

EXECUTIVE BUDGET BILL

A bill to make appropriations for the department of history, arts and libraries and certain other state purposes for the fiscal year ending September 30, 2003; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this bill, the amounts listed in this part are appropriated for the department of history, arts and libraries for the fiscal year ending September 30, 2003, from the funds identified in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF HISTORY, ARTS AND LIBRARIES

APPROPRIATIONS SUMMARY:

Full-time equated unclassified positions. 6.0

Full-time equated classified positions 240.5

GROSS APPROPRIATION $ 72,264,900

Interdepartmental grant revenues:

Total interdepartmental grants and

intradepartmental transfers 0

ADJUSTED GROSS APPROPRIATION $ 72,264,900

Federal revenues:

Total federal revenues 7,111,300

Special revenue funds:

Total local revenues 0

Total private revenues 577,400

Total other state restricted revenues 1,900,900

State general fund/general purpose $ 62,675,300

Sec. 102. DEPARTMENT OPERATIONS

Full-time equated unclassified positions 6.0

Full-time equated classified positions 25.0

Unclassified salaries--6.0 FTE positions $ 211,300

Management services--24.0 FTE positions 2,117,300 Building occupancy charges and rent 2,739,300

Worker's compensation 34,000

Office of film and television services--1.0 FTE

position 143,500

GROSS APPROPRIATION $ 5,245,400

Appropriated from:

State general fund/general purpose $ 5,245,400

Sec. 103. INFORMATION TECHNOLOGY

Information technology services and projects $ 1,166,100

GROSS APPROPRIATION $ 1,166,100

Appropriated from:

Special revenue funds:

State general fund/general purpose $ 1,166,100

Sec. 104. COUNCIL FOR ARTS AND CULTURAL AFFAIRS

Full-time equated classified positions 10.0

Administration--10.0 FTE positions $ 839,100

Arts and cultural grants 23,542,600

GROSS APPROPRIATION $ 24,381,700

Appropriated from:

Federal revenues:

NEA, national endowment for the arts 700,000

Special revenue funds:

State general fund/general purpose $ 23,681,700

Sec. 105. MACKINAC ISLAND STATE PARK COMMISSION

Full-time equated classified positions 47.8

Mackinac Island state park operations--22.8 FTE

positions $ 1,541,300 Historical facilities system--25.0 FTE

positions 1,409,500

GROSS APPROPRIATION $ 2,950,800

Appropriated from:

Special revenue funds:

Airport and park operation fees 76,400 Mackinac Island state park fund 1,037,600

State general fund/general purpose $ 1,836,800

Sec. 106. MICHIGAN HISTORICAL PROGRAM

Full-time equated classified positions 78.7

Historical administration and services--63.8 FTE

positions $ 4,940,800

Federal programs--14.9 FTE positions 1,853,900

Heritage publications 700,000

Private grants and gifts 502,400

Thunder Bay national marine sanctuary and

underwater preserve 250,000

GROSS APPROPRIATION $ 8,247,100

Appropriated from:

Federal revenues:

DOI-NPS, historical preservation grants-in-aid 1,348,000

Federal funds 505,900

Special revenue funds:

Private-grants and gifts 400,000

Private-Mann house trust fund 102,400

Heritage publication fund 700,000

State general fund/general purpose $ 5,190,800

Sec. 107. LIBRARY OF MICHIGAN

Full-time equated classified positions 79.0

Library of Michigan operations--79.0 FTE

positions $ 7,577,900

Collected gifts and fees 161,900

Book distribution centers 308,400

State aid to libraries 13,327,000

Grant to the Detroit public library 2,877,100

Grand Rapids public library 199,200

Subregional state aid 561,200

Wayne County library for the blind and

physically handicapped 46,600

Library services and technology act 4,557,400

Renaissance zone reimbursement 657,100

GROSS APPROPRIATION $ 30,273,800

Appropriated from:

Federal revenues:

Library services and technology act 4,557,400

Special revenue funds:

Private-gifts and bequests revenues 75,000

User fees 86,900

State general fund/general purpose $ 25,554,500

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2002-2003 is $64,576,200.00 and state spending from state resources to be paid to local units of government for fiscal year 2002-2003 is $32,668,200.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF HISTORY, ARTS AND LIBRARIES

Arts and cultural grants $ 15,000,000

State aid to libraries 13,327,000

Detroit public library 2,877,100

Grand Rapids public library 199,200

Subregional state aid 561,200

Wayne County library for the blind and physically

handicapped 46,600

Renaissance zone reimbursement 657,100

Total department of history, arts and

libraries $ 32,668,200

Sec. 202. The appropriations 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) "Department" means the department of history, arts and libraries.

(b) "Director" means the director of the department of history, arts and libraries.

(d) "Fiscal agencies" means Michigan house fiscal agency and Michigan senate fiscal agency.

(e) "FTE" means full-time equated.

(f) "NEA" means the national endowment for the arts.

(g) "Subcommittees" means all members of the appropriate subcommittees of the house and senate appropriations subcommittees.

Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.

Sec. 205. (1) A hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from one position to another within a department.

(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services, cause loss of revenue to the state, result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report quarterly to the chairpersons of the senate and house standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous quarter and the reasons to justify the exception.

Sec. 206. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $750,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 208. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of this bill. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement or it may include placement of reports on an Internet or Intranet site.

Sec. 211. In addition to funds appropriated in part 1, the department may accept contributions, gifts, bequests, devises, user fees, grants, and donations. Funds accepted by the department are appropriated and allotted when received and may be expended immediately upon receipt or at any later time. Those funds that are not expended in the current fiscal year shall not lapse at the close of the fiscal year and may be carried over by the library of Michigan for expenditure in the following fiscal years.

Sec. 259. From the funds appropriated in part 1 for information technology, the department shall pay user fees to the department of information technology for technology related services and projects. Such user fees shall be subject to provisions of an interagency agreement between the department and the department of information technology.

Sec. 260. Amounts appropriated in part 1 for information technology may be designated as work projects and carried forward to support technology projects under the direction of the department of information technology. Funds designated in this manner are not available for expenditure until approved as work projects under section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a.

DEPARTMENT OPERATIONS

Sec. 301. (1) The appropriations in part 1 may be used for per diem payments to the members of commissions, boards, or committees for a full day of commission, board, or committee work at which a quorum is present, for attending a hearing as authorized by the respective commission, board, or committee, or for performing official business as authorized by each respective commission, board, or committee.

(2) The per diem payments shall be $50.00 per day for all commissions and boards.

COUNCIL FOR THE ARTS AND CULTURAL AFFAIRS

Sec. 401. (1) The Michigan council for arts and cultural affairs in the department shall administer the arts and cultural grants appropriated in part 1. The council shall provide for fair and independent decisions on arts and cultural grant requests based upon published criteria to evaluate program quality. This criteria shall include a prohibition of art projects that include displays of human wastes on religious symbols, displays of sex acts, and depictions of flag desecration. The council shall seek to award grants on an equitable geographic basis to the extent possible given the quality of grant applications received. Priority shall be given to projects that serve multiple counties and that leverage significant additional public and private investment. Counties, cities, villages, townships, community foundations, and organizations, including science museums/centers, may apply for the following categories of grants:

(a) Anchor organization program for organizations that serve a statewide audience. Anchor organizations shall demonstrate a commitment to education, to mentoring smaller organizations, and to reaching underserved audiences.

(b) Arts projects program.

(d) Artists in schools program.

(e) Arts organization development program.

(f) Capital improvement projects.

(g) Local, regional, or statewide arts agencies services program.

(h) Regional regranting program.

(i) Partnership program.

(j) Discretionary grants program.

(k) Rural arts and cultural projects.

Sec. 402. The appropriation for arts and cultural grants in part 1 and disbursed under section 401 shall, at a minimum, be matched on an equal dollar-for-dollar basis from local and private contributions paid and received by each awardee receiving grants under section 401. The dollar-for-dollar match may include the reasonable value of services, materials, and equipment as allowed under the federal internal revenue code for charitable contributions subject also to the preapproval of such a match by the Michigan council for arts and cultural affairs. The council shall receive proof of the entire amount of the matching funds, services, materials, or equipment by the end of the award period.

Sec. 403. Before any amount appropriated for arts and cultural grants in part 1 may be expended for a grant to eligible applicants for the purposes in section 401, the department shall execute a grant agreement with each grantee. The grant agreement shall specify the criteria included in section 401 with which the application complies. The grant agreement shall include a list of the projects funded.

Sec. 404. Counties, cities, villages, townships, community foundations, and organizations receiving funds under section 401 shall provide to the Michigan council for arts and cultural affairs a final report covering the grant period within 30 days after the end of the grant period indicating at least the following:

(a) Project revenues and expenditures indicating grant matching fund amounts.

(b) Number of patrons attracted or benefitting during the grant period.

Awardees receiving grants greater than $100,000.00, shall also submit this same report on an interim basis by April 7 of the grant year.

Sec. 405. The applicants for arts and cultural grant funds shall be charged a nonrefundable application fee of $100.00 or 1% of the grant, whichever is less. The application fee may be used by the department to recover direct and indirect costs as appropriated in part 1.

Sec. 406. It is the intent of the legislature that the Michigan council for arts and cultural affairs continue to take appropriate steps to ensure that all organizations receiving state arts anchor organization grants have combined grant awards, as defined in section 408, of no more than 15.0% of operating revenue for the fiscal year ending September 30, 2005 and beyond. As used in this section, "operating revenue" is defined in the same manner as it was defined during the fiscal year 2000 state arts anchor organization application process.

Sec. 407. The council shall continue and expand its efforts to encourage and support nonprofit arts and cultural organizations transitioning from solely volunteer-based organizations to professional directed operations. This includes the provision of funds and services from the arts organization development, partnership, arts projects, anchor organization and regional regranting programs as well as the rural arts and culture initiative to support professional development within these organizations. Criteria for support include the requirement of collaboration between these organizations and other community organizations.

Sec. 408. Any organizations receiving grants within the anchor organization program category in excess of 10.0% of their operating revenue, as defined in section 406, for the fiscal year ending September 30, 2002 shall not receive a combined grant award from all grant categories, except the partnership program, that is greater than the combined grant award from these categories that the organization received for the fiscal year ending September 30, 2002.

Sec. 409. The council shall provide for fair, equitable, and efficient distribution of funds granted through the regional regranting program. The council shall provide for an annual assessment of grant management and distribution of mini-grant awards by designated regional regranting agencies and review the methodology employed.

Sec. 410. The council shall make every effort to provide total grant awards in the anchor organization program at a level not to exceed 65% of the total amount appropriated for arts and cultural grants.

Sec. 411. The department will submit two annual reports to the state budget office and the appropriations subcommittees. The first report will be due 30 days after the annual grant awards are made by the council. The report shall contain:

(a) A listing of each applicant.

(b) The county of residence of an applicant.

(d) The amount requested.

(e) The grant category under which an applicant applied.

(f) The expected number of patrons for an applicant during the grant period.

(g) The amount of matching funds proposed by an applicant.

(h) The review score for each application.

(i) A listing with the information in items a through c above for any regranted funds in the preceding fiscal year.

The second report will be due when materials are first distributed by the council seeking grant applications for the following fiscal year. The report shall contain:

(a) The guidelines by which the council will award grants.

(b) A summary of any changes in the program guidelines from the previous fiscal year.

(c) A summary of any initiatives the council is taking to improve public access to the arts and culture, including the use of technology applications.

MICHIGAN HISTORICAL PROGRAM

Sec. 501. The federal funds appropriated in part 1 for the historic site preservation grants are for work projects and shall not lapse at the end of the fiscal year but shall continue to be available for expenditure until the projects for which the funds were reserved have been completed or are terminated. The purpose of these work projects is the identification, designation, and preservation of historic resources. The method used will be to solicit applications from eligible recipients, score applications based upon established criteria, and award the contracts and subgrants. The total cost is $1,348,000.00 and the tentative completion date is September 30, 2003.

Sec. 502. Funds collected by the department under sections 3, 6, 7, and 7a of 1913 PA 271, MCL 399.3, 399.6, 399.7, and 399.7a, are appropriated to the department for the purpose for which they were received and shall not lapse to the general fund at the end of the fiscal year.

Sec. 503. For purposes of administering the museum store as provided in section 7a of 1913 PA 271, MCL 399.7a, the department is exempt from section 261 of the management and budget act, 1984 PA 431, MCL 18.1261.

Sec. 504. (1) From the state funds appropriated in part 1, the department may award discretionary historical grants to preserve Michigan lighthouses. The department may award up to $152,700.00 in grants for this purpose and may use a portion of those funds to assist in the transfer of lighthouses from federal ownership. A portion of the funds may also be dedicated to program administration and project coordination.

(2) The department shall allocate grant funds pursuant to eligibility and scoring requirements established by the department. The method used will be to solicit applications from eligible recipients, score applications based on the established criteria, and award grants through executed contracts.

(3) Grants may be awarded for purposes of stabilization, rehabilitation, or other preservation work on a Michigan lighthouse, but shall not be awarded for operational purposes. The department shall not allocate a grant that exceeds $40,000.00.

(4) The funds appropriated and allocated by this section are for work projects. The funds shall not lapse to the general fund at the end of the fiscal year but shall remain available in subsequent fiscal years, until funds have been expended, the projects for which the funds were reserved have been completed, or the projects are terminated, whichever occurs first. The tentative date for completion is September 30, 2004.

Sec. 505. From the funds appropriated in part 1 for historical administration and services, $71,200.00 shall be allocated to support the operations of the Michigan freedom trail commission as specified in section 4 of the Michigan freedom trail commission act, 1998 PA 409, MCL 399.84. These funds shall be used to reimburse commission members, to pay for necessary contractual services of the commission, and to hire not more than 1.0 FTE position in the department's Michigan historical center to support commission operations.

Sec. 506. (1) In addition to the funds appropriated in part 1, the department shall collect an application fee of $250.00 for each application submitted under section 1 of 1955 PA 10, MCL 399.151, for property designated as a state historic site.

(2) The department shall deposit the fees collected under subsection (1) in a separate revolving fund. Any revenue remaining in the fund at the end of the fiscal year shall not lapse to the general fund but shall remain available for future expenditures. The department may expend any revenues in the fund immediately upon receipt. Expenditures shall be made only for the purpose of correcting, repairing, or replacing numbered markers erected pursuant to section 2 of 1955 PA 10, MCL 399.152.

LIBRARY OF MICHIGAN

Sec. 651. The appropriation in part 1 to the library of Michigan, for subregional state aid, shall not be expended unless the local unit of government agrees to not reduce local support below the level of local support expended for subregional library services in the local unit of government's immediately preceding fiscal year. A reduction in local expenditures that equally affects all agencies within a local unit of government shall not be interpreted as a replacement of local financial or in-kind support with state aid funds.

Sec. 652. The appropriation in part 1 for a subregional library, shall not be released until a budget for that subregional library has been approved by the department for expenditures for library services directly serving the blind and persons with disabilities. Subregional state aid shall be used only for providing services to the blind and to persons with disabilities.

Sec. 653. The appropriation in part 1 for statewide database access, shall be used only for making computerized databases, searches of those databases, and the products of those searches, available through the libraries of Michigan. Only those libraries that qualify under the federal library services and technology act, subtitle B of title II of the museum and library services act, Public Law 94-462, 110 Stat. 3009-901, are eligible to participate in this project.

Sec. 654. From the state general fund/general purpose appropriation in part 1, there is allocated $657,100.00 to reimburse public libraries as provided by section 12 of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692, for property taxes levied in 2002. Reimbursements shall be made in amounts to each eligible recipient not later than 60 days after the department of treasury certifies to the department that it has received all necessary information to properly determine the amounts due each eligible recipient under section 12(4) of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692. Any excess allocations shall lapse to the general fund.