January 8, 2003, Introduced by Senator JOHNSON and referred to the Committee on
Technology and Energy.
A bill to amend 1964 PA 183, entitled
"An act creating the state building authority with power to
acquire, construct, furnish, equip, own, improve, enlarge,
operate, mortgage, and maintain facilities for the use of the
state or any of its agencies; to act as a developer or co-owner
of facilities as a condominium project for the use of the state
or any of its agencies; to authorize the execution of leases
pertaining to those facilities by the building authority with the
state or any of its agencies; to authorize the payment of true
rentals by the state; to provide for the issuance of revenue
obligations by the building authority to be paid from the true
rentals to be paid by the state and other resources and security
provided for and pledged by the building authority; to authorize
the creation of funds; to authorize the conveyance of lands by
the state or any of its agencies for the purposes authorized in
this act; to authorize the appointment of a trustee for
bondholders; to permit remedies for the benefit of parties in
interest; to provide for other powers and duties of the
authority; and to provide for other matters in relation to the
authority and its obligations,"
by amending section 7 (MCL 830.417), as amended by 1994 PA 252.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 7. (1) The state may lease facilities from the
2 building authority for public purposes within the concepts
1 provided in this act, upon terms and conditions agreed upon and
2 subject to the limitations and provisions provided in section 6.
3 Before execution, a lease shall be approved by the state
4 administrative board and, except as provided in subsection (3),
5 by concurrent resolution of the legislature concurred in by a
6 majority of the members elected to and serving in each house.
7 The votes and names of the members voting shall be entered in the
8 journal. The lease as approved by the building authority and the
9 administrative board, and if required, the legislature or an
10 institution of higher education, may provide for a determinable
11 true rental as a range as permitted under section 1(e).
12 (2) If a lease is approved containing a true rental stated as
13 a range, then actual rental to be paid under the lease shall be
14 fixed at an amount certified by the appraiser and, after the
15 certification, shall be approved by the state administrative
16 board and the building authority. The appraiser shall not
17 certify, and the board and authority shall not approve, a true
18 rental amount unless the amount is fixed within or below the
19 stated range. A lease shall not be executed more than 3 years
20 after its approval by the legislature. The state shall pay to
21 the building authority or its assignee the true rental at the
22 times, in the manner, and at the place specified in the lease.
23 The governor and the budget director shall include in the annual
24 budget of the state for each year an amount fully sufficient to
25 pay the true rental required to be paid by the state to the
26 building authority or its assignee required by any lease under
27 this act. If the lease is for an institution of higher
1 education, then in addition, the lease shall be authorized by the
2 institution of higher education and signed by its authorized
3 officers.
4 (3) The state ,
except institutions of higher education,
5 may lease from the building authority property that is comprised
6 only of furnishings or equipment if all of the following
7 requirements are met:
8 (a) Before a lease that is only for furnishings or equipment
9 is executed, the general form of the lease shall be approved by
10 concurrent resolution of the legislature concurred in by a
11 majority of the members elected to and serving in each house.
12 The form of the lease approved by the legislature need not
13 contain a description of the property to be leased or the rental
14 or a rental range. However, before the state executes the lease,
15 the description of the property to be leased and the rental shall
16 be approved by the state administrative board as provided in
17 subsection (2). The concurrent resolution of the legislature
18 approving the form of lease shall also approve a maximum amount
19 of furnishings and equipment that may be leased during the 2
20 years following the approval of the lease pursuant to the form of
21 lease approved.
22 (b) A lease that is only for furnishings or equipment shall
23 be executed only if the furnishings or equipment are for use by a
24 state agency as determined under the management and budget act,
25 Act No. 431 of the
Public Acts of 1984, being sections 18.1101
26 to 18.1594 of the Michigan
Compiled Laws 1984 PA 431, MCL
27 18.1101 to 18.1594, or for use by an institution of higher
1 education.
2 (c) If the lease is for an institution of higher education,
3 before the state executes the lease, the description of the
4 property to be leased and the rental shall also be approved by
5 the institution of higher education as provided in subsection
6 (2). Institutions of higher education may only lease from the
7 building authority furnishings, hardware, and other types of
8 equipment associated with telecommunications, including, but not
9 limited to, digital broadcasting, wireless networking, and
10 internet services.