mergency Telephone Fund Transfer

Senate Bill SB 1015

Sponsor:  Rep. Sen. D. Cherry

Committee:  Appropriations

First Analysis

BRIEF SUMMARY:

   The bill amends the Emergency Telephone Service Enabling Act to allow for a one-time payment of $12 million from the Commercial Mobile Radio System (CMRS) Emergency Telephone Fund to the State Building Authority (SBA) to partially cover the FY 2004 rent cost of the Michigan Public Safety Communications System.  The SBA, through the issuance of tax exempt debt, will finance more than 90% of this project’s $234.2 million construction cost.  The total FY 2004 SBA rent obligation for this project is $21.6 million.

FISCAL IMPACT:

        Executive Order 2003-23 reduced the FY 2004 SBA rent line item for State Agencies by $12 million GF/GP based on enactment of legislation to effectuate the transfer from the Emergency Telephone Fund.  Failure to enact this bill will result in a negative GF/GP impact of $12 million.  The FY 2004 Capital Outlay budget act contains language that allows for automatic appropriations if the actual line item appropriations for SBA rent are insufficient to fund the payments.

                                                                                           Legislative Analyst:  

                                                                                                  Fiscal Analyst:   A. Valenzio

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.