SENATE BILL No. 318

 

 

March 19, 2003, Introduced by Senator CLARKE and referred to the Committee on Appropriations.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

    EXECUTIVE BUDGET BILL                                                       

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                     A bill to make appropriations for the department of history, arts,          

                                                                                

    and libraries for the fiscal year ending September 30, 2004; to provide     

                                                                                

    for the expenditure of those appropriations; to provide for the             

                                                                                

    disposition of fees and other income received by the state agencies; to     

                                                                                

    provide for the disbursement of certain grants; to provide for reports;     

                                                                                

    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:                                  

                                                                                

1   PART 1                                                                      

                                                                                

2   LINE-ITEM APPROPRIATIONS                                                    

                                                                                


                                                                                

1       Sec. 101. Subject to the conditions set forth in this bill, the             

                                                                                

2   amounts listed in this part are appropriated for the department of          

                                                                                

3   history, arts, and libraries for the fiscal year ending September 30,       

                                                                                

4   2004, from the funds indicated in this part.  The following is a            

                                                                                

5   summary of the appropriations in this part:                                 

                                                                                

6   DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES                                  

                                                                                

7   APPROPRIATIONS SUMMARY:                                                     

                                                                                

8                                                                                    Full-time equated unclassified positions     6.0                                                                         

                                                                                

9                                                                                    Full-time equated classified positions     248.5                                                                       

                                                                                

10      GROSS APPROPRIATION                                                              $    58,786,300                                                                  

                                                                                

11  Interdepartmental grant revenues:                                           

                                                                                

12      Total interdepartmental grants and intradepartmental                        

                                                                                

13                                                                                   transfers                                                                            137,500                                                                     

                                                                                

14  ADJUSTED GROSS APPROPRIATION                                                     $    58,648,800                                                                  

                                                                                

15  Federal revenues:                                                           

                                                                                

16      Total federal revenues                                                               9,322,600                                                                   

                                                                                

17  Special revenue funds:                                                      

                                                                                

18      Total local revenues                                                                                                                                          0    

                                                                                

19      Total private revenues                                                               577,400                                                                     

                                                                                

20      Total other state restricted revenues                                                2,308,800                                                                   

                                                                                

21      State general fund/general purpose                                               $    46,440,000                                                                  

                                                                                

22                                                                                   Sec. 102. DEPARTMENT OPERATIONS                                             

                                                                                

23                                                                                   Full-time equated unclassified positions     6.0                                                                         

                                                                                

24                                                                                   Full-time equated classified positions     24.5                                                                        

                                                                                

25      Unclassified salaries--6.0 FTE positions                                         $    219,400                                                                     

                                                                                

26      Management services--23.5 FTE positions                                              1,819,800                                                                   

                                                                                

27      Building occupancy charges and rent                                                  2,884,100                                                                   


                                                                                

1       Worker's compensation                                                                38,000                                                                      

                                                                                

2       Office of film and television services--1.0 FTE                             

                                                                                

3                                                                                    position                                                                             117,600                                                                     

                                                                                

4       GROSS APPROPRIATION                                                              $    5,078,900                                                                   

                                                                                

5                                                                                    Appropriated from:                                                          

                                                                                

6       State general fund/general purpose                                               $    5,078,900                                                                   

                                                                                

7                                                                                    Sec. 103. INFORMATION TECHNOLOGY                                            

                                                                                

8       Information technology services and projects                                     $    1,036,600                                                                   

                                                                                

9       GROSS APPROPRIATION                                                              $    1,036,600                                                                   

                                                                                

10                                                                                   Appropriated from:                                                          

                                                                                

11  Interdepartmental grant revenues:                                           

                                                                                

12      IDG-MDOT, comprehensive transportation fund                                          200                                                                         

                                                                                

13      IDG-MDOT, state aeronautics fund                                                     100                                                                         

                                                                                

14      IDG-MDOT, state trunkline fund                                                       3,000                                                                       

                                                                                

15  Special revenue funds:                                                      

                                                                                

16      Game and fish protection fund                                                        100                                                                         

                                                                                

17      Mackinac Island state park fund                                                      40,000                                                                      

                                                                                

18      Special revenue, internal service and pension trust                                  2,700                                                                       

                                                                                

19      State lottery fund                                                                   900                                                                         

                                                                                

20      State general fund/general purpose                                               $    989,600                                                                     

                                                                                

21                                                                                   Sec. 104. MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS                    

                                                                                

22                                                                                   Full-time equated classified positions     10.0                                                                        

                                                                                

23      Administration--10.0 FTE positions                                               $    694,500                                                                     

                                                                                

24      Arts and cultural grants                                                             11,771,300                                                                  

                                                                                

25      GROSS APPROPRIATION                                                              $    12,465,800                                                                  

                                                                                

26                                                                                   Appropriated from:                                                          

                                                                                

27  Federal revenues:                                                           


                                                                                

1       NFAH-NEA, promotion of the arts, partnership agreements                              700,000                                                                     

                                                                                

2   Special revenue funds:                                                      

                                                                                

3       State general fund/general purpose                                               $    11,765,800                                                                  

                                                                                

4                                                                                    Sec. 105. MACKINAC ISLAND STATE PARK COMMISSION                             

                                                                                

5                                                                                    Full-time equated classified positions     46.8                                                                        

                                                                                

6       Mackinac Island park operation--21.8 FTE positions                               $    1,288,400                                                                   

                                                                                

7       Historical facilities system--25.0 FTE positions                                     1,577,200                                                                   

                                                                                

8       GROSS APPROPRIATION                                                              $    2,865,600                                                                   

                                                                                

9                                                                                    Appropriated from:                                                          

                                                                                

10  Special revenue funds:                                                      

                                                                                

11      Airport and park operation fees                                                      106,400                                                                     

                                                                                

12      Mackinac Island state park fund                                                      1,272,600                                                                   

                                                                                

13      State general fund/general purpose                                               $    1,486,600                                                                   

                                                                                

14                                                                                   Sec. 106. MICHIGAN HISTORICAL PROGRAM                                       

                                                                                

15                                                                                   Full-time equated classified positions     86.2                                                                        

                                                                                

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

                                                                                

17      Heritage publications                                                                700,000                                                                     

                                                                                

18      Historical administration and services--71.3 FTE                            

                                                                                

19                                                                                   positions                                                                            4,806,000                                                                   

                                                                                

20      Private grants and gifts                                                             502,400                                                                     

                                                                                

21      Thunder Bay national marine sanctuary and underwater                        

                                                                                

22                                                                                   preserve                                                                             187,500                                                                     

                                                                                

23      GROSS APPROPRIATION                                                              $    8,049,800                                                                   

                                                                                

24                                                                                   Appropriated from:                                                          

                                                                                

25  Interdepartmental grant revenues:                                           

                                                                                

26      IDG-MDOT, comprehensive transportation fund                                          5,700                                                                       

                                                                                

27      IDG-MDOT, state aeronautics fund                                                     3,400                                                                       


                                                                                

1       IDG-MDOT, state trunkline fund                                                       125,100                                                                     

                                                                                

2   Federal revenues:                                                           

                                                                                

3       DOI-NPS, historic preservation grants-in-aid                                         1,348,000                                                                   

                                                                                

4       Federal funds                                                                        505,900                                                                     

                                                                                

5   Special revenue funds:                                                      

                                                                                

6       Private - grants and gifts                                                           400,000                                                                     

                                                                                

7       Private - Mann house trust fund                                                      102,400                                                                     

                                                                                

8       Game and fish protection fund                                                        3,600                                                                       

                                                                                

9       Heritage publication fund                                                            700,000                                                                     

                                                                                

10      Marine safety fund                                                                   500                                                                         

                                                                                

11      Special revenue, internal service and pension trust                                  70,000                                                                      

                                                                                

12      State lottery fund                                                                   24,300                                                                      

                                                                                

13      Waterways fund                                                                       800                                                                         

                                                                                

14      State general fund/general purpose                                               $    4,760,100                                                                   

                                                                                

15                                                                                   Sec. 107. LIBRARY OF MICHIGAN                                               

                                                                                

16                                                                                   Full-time equated classified positions     81.0                                                                        

                                                                                

17      Book distribution centers                                                        $    277,600                                                                     

                                                                                

18      Collected gifts and fees                                                             161,900                                                                     

                                                                                

19      Grand Rapids public library                                                          185,800                                                                     

                                                                                

20      Grant to the Detroit public library                                                  2,682,900                                                                   

                                                                                

21      Library of Michigan operations--81.0 FTE positions                                   6,424,100                                                                   

                                                                                

22      Library services and technology act                                                  5,557,400                                                                   

                                                                                

23      Renaissance zone reimbursement                                                       1,640,000                                                                   

                                                                                

24      State aid to libraries                                                               11,809,900                                                                  

                                                                                

25      Subregional state aid                                                                505,100                                                                     

                                                                                

26      Wayne County library for the blind and physically                           

                                                                                

27                                                                                   handicapped                                                                          44,900                                                                      


                                                                                

1       GROSS APPROPRIATION                                                              $    29,289,600                                                                  

                                                                                

2                                                                                    Appropriated from:                                                          

                                                                                

3   Federal revenues:                                                           

                                                                                

4       Federal section 903(d), SSA funds                                                    1,211,300                                                                   

                                                                                

5       Library services and technology act                                                  5,557,400                                                                   

                                                                                

6   Special revenue funds:                                                      

                                                                                

7       Private - gifts and bequests revenues                                                75,000                                                                      

                                                                                

8       User fees                                                                            86,900                                                                      

                                                                                

9       State general fund/general purpose                                               $    22,359,000                                                                  

                                                                                

10  PART 2                                                                      

                                                                                

11  PROVISIONS CONCERNING APPROPRIATIONS                                        

                                                                                

12  GENERAL SECTIONS                                                            

                                                                                

13      Sec. 201. Pursuant to section 30 of article IX of the state                 

                                                                                

14  constitution of 1963, total state spending from state resources under       

                                                                                

15  part 1 for fiscal year 2003-2004 is $48,748,800.00 and state spending       

                                                                                

16  from state resources to be paid to units of local government for fiscal     

                                                                                

17  year 2003-2004 is $19,495,200.00.  The itemized statement below             

                                                                                

18  identifies appropriations from which spending to units of local             

                                                                                

19  government will occur:                                                      

                                                                                

20  DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES                                  

                                                                                

21      Arts and cultural grants                                                         $    3,653,500                                                                   

                                                                                

22      State aid to libraries                                                               11,809,900                                                                  

                                                                                

23      Detroit public library                                                               1,720,800                                                                   

                                                                                

24      Grand Rapids public library                                                          121,000                                                                     

                                                                                

25      Subregional state aid                                                                505,100                                                                     

                                                                                

26      Wayne County library for the blind and physically                           

                                                                                

27                                                                                   handicapped                                                                          44,900                                                                      


                                                                                

1       Renaissance zone reimbursement                                                       1,640,000                                                                   

                                                                                

2       Total department of history, arts, and libraries                                 $    19,495,200                                                                  

                                                                                

3       Sec. 202. The appropriations authorized under this bill are subject         

                                                                                

4   to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.      

                                                                                

5       Sec. 203. As used in this bill:                                             

                                                                                

6       (a) "Department" means the department of history, arts, and                 

                                                                                

7   libraries.                                                                  

                                                                                

8       (b) "Director" means the director of the department of history,             

                                                                                

9   arts, and libraries.                                                        

                                                                                

10      (c) "DOI-NPS" means the United States department of interior,               

                                                                                

11  national park service.                                                      

                                                                                

12      (d) "Fiscal agencies" means the house fiscal agency and the                 

                                                                                

13  senate fiscal agency.                                                       

                                                                                

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

                                                                                

15      (f) "IDG" means interdepartmental grant.                                    

                                                                                

16      (g) "NEA" means the national endowment for the arts.                        

                                                                                

17      (h) "NFAH" means the national foundation of the arts and the                

                                                                                

18  humanities.                                                                 

                                                                                

19      (i) "SSA" means social security administration.                             

                                                                                

20      (j) "Subcommittees" means all members of the appropriate                    

                                                                                

21  subcommittees of the house and senate appropriations committees.            

                                                                                

22      Sec. 204. The department of civil service shall bill departments and        

                                                                                

23  agencies at the end of the first fiscal quarter for the 1% charge           

                                                                                

24  authorized by section 5 of article XI of the state constitution of          

                                                                                

25  1963.  Payments shall be made for the total amount of the billing by        

                                                                                

26  the end of the second fiscal quarter.                                       

                                                                                

27      Sec. 205. (1) A hiring freeze is imposed on the state classified            


                                                                                

1   civil service.  State departments and agencies are prohibited from          

                                                                                

2   hiring any new state classified civil service employees and prohibited      

                                                                                

3   from filling any vacant state classified civil service positions.  This     

                                                                                

4   hiring freeze does not apply to internal transfers of classified            

                                                                                

5   employees from 1 position to another within a department.                   

                                                                                

6       (2) The state budget director shall grant exceptions to this                

                                                                                

7   hiring freeze when the state budget director believes that the hiring       

                                                                                

8   freeze will result in rendering a state department or agency unable to      

                                                                                

9   deliver basic services, cause a loss of revenue to the state, result in     

                                                                                

10  the inability of the state to receive federal funds, or necessitate         

                                                                                

11  additional expenditures that exceed any savings from maintaining the        

                                                                                

12  vacancy.  The state budget director shall report quarterly to the           

                                                                                

13  chairpersons of the senate and house of representatives standing            

                                                                                

14  committees on appropriations the number of exceptions to the hiring         

                                                                                

15  freeze approved during the previous quarter and the reasons to justify      

                                                                                

16  the exception.                                                              

                                                                                

17      Sec. 206. Unless otherwise specified, departments and agencies              

                                                                                

18  receiving appropriations in part 1 shall use the Internet to fulfill        

                                                                                

19  the reporting requirements of this bill.  This requirement may include      

                                                                                

20  transmission of reports via electronic mail to the recipients               

                                                                                

21  identified for each reporting requirement, or it may include placement      

                                                                                

22  of reports on an Internet or Intranet site.                                 

                                                                                

23      Sec. 207. (1) In addition to the funds appropriated in part 1, there        

                                                                                

24  is appropriated an amount not to exceed $1,000,000.00 for federal           

                                                                                

25  contingency funds.  These funds are not available for expenditure until     

                                                                                

26  they have been transferred to another line item in this bill under          

                                                                                

27  section 393(2) of the management and budget act, 1984 PA 431, MCL           


                                                                                

1   18.1393.                                                                    

                                                                                

2       (2) In addition to the funds appropriated in part 1, there is               

                                                                                

3   appropriated an amount not to exceed $1,000,000.00 for state-restricted     

                                                                                

4   contingency funds.  These funds are not available for expenditure until     

                                                                                

5   they have been transferred to another line item in this bill under          

                                                                                

6   section 393(2) of the management and budget act, 1984 PA 431, MCL           

                                                                                

7   18.1393.                                                                    

                                                                                

8       (3) In addition to the funds appropriated in part 1, there is               

                                                                                

9   appropriated an amount not to exceed $100,000.00 for local contingency      

                                                                                

10  funds.  These funds are not available for expenditure until they have       

                                                                                

11  been transferred to another line item in this bill under section 393(2)     

                                                                                

12  of the management and budget act, 1984 PA 431, MCL 18.1393.                 

                                                                                

13      (4) In addition to the funds appropriated in part 1, there is               

                                                                                

14  appropriated an amount not to exceed $750,000.00 for private                

                                                                                

15  contingency funds.  These funds are not available for expenditure until     

                                                                                

16  they have been transferred to another line item in this bill under          

                                                                                

17  section 393(2) of the management and budget act, 1984 PA 431, MCL           

                                                                                

18  18.1393.                                                                    

                                                                                

19      Sec. 208. In addition to the funds appropriated in part 1, the              

                                                                                

20  department may accept contributions, gifts, bequests, devises, user         

                                                                                

21  fees, grants, donations, and payments to rent the department’s              

                                                                                

22  traveling museum exhibits.  Funds accepted by the department are            

                                                                                

23  appropriated and allotted when received and may be expended immediately     

                                                                                

24  upon receipt or at any later time.  Those funds that are not expended       

                                                                                

25  in the current fiscal year shall not lapse at the close of the fiscal       

                                                                                

26  year and may be carried over by the department for expenditure in the       

                                                                                

27  following fiscal years.                                                     


                                                                                

1       Sec. 209. From the funds appropriated in part 1 for information             

                                                                                

2   technology, departments and agencies shall pay user fees to the             

                                                                                

3   department of information technology for technology-related services        

                                                                                

4   and projects.  Such user fees shall be subject to provisions of an          

                                                                                

5   interagency agreement between the department and agencies and the           

                                                                                

6   department of information technology.                                       

                                                                                

7       Sec. 210. Amounts appropriated in part 1 for information technology         

                                                                                

8   may be designated as work projects and carried forward to support           

                                                                                

9   department of history, arts, and libraries projects under the direction     

                                                                                

10  of the department of information technology.  Funds designated in this      

                                                                                

11  manner are not available for expenditure until approved as work             

                                                                                

12  projects under section 451a of the management and budget act, 1984 PA       

                                                                                

13  431, MCL 18.1451a.                                                          

                                                                                

14      Sec. 211. The department may provide and enter into agreements to           

                                                                                

15  provide general services, training, meetings, information, special          

                                                                                

16  equipment, software, and facility use, and technical consulting             

                                                                                

17  services to other principal executive departments, state agencies,          

                                                                                

18  local units of government, the judicial branch of government, other         

                                                                                

19  organizations, and patrons of department facilities.  Fees for such         

                                                                                

20  services shall be reasonably related to the cost of providing the           

                                                                                

21  services and shall be used to offset the costs of the services. The         

                                                                                

22  department may receive and expend funds in addition to those authorized     

                                                                                

23  in part 1 for:                                                              

                                                                                

24      (a) Supplying census-related information and technical services,            

                                                                                

25  publications, statistical studies, population projections and               

                                                                                

26  estimates, and other demographic products.                                  

                                                                                

27      (b) Microfilming and other document and data imaging services,              


                                                                                

1   media, storage, and copies.                                                 

                                                                                

2       (c) Patron copier and document reproduction services and copies.            

                                                                                

3       (d) Conferences, training classes, and workshops conducted as               

                                                                                

4   part of the department’s mission.                                           

                                                                                

5       (e) Use of specialized equipment, facilities, and software that             

                                                                                

6   permit distance learning and meetings, and group decision making.           

                                                                                

7   Unexpended funds at year-end may be carried forward and expended for        

                                                                                

8   the same purposes for which they were originally received.                  

                                                                                

9       Sec. 212. (1) In addition to the amounts appropriated in part 1, in         

                                                                                

10  order to encourage administrative efficiencies, there is appropriated       

                                                                                

11  to the department of history, arts, and libraries, an amount not to         

                                                                                

12  exceed one-half of the unexpended, unreserved general fund portions of      

                                                                                

13  fiscal year 2002-2003 appropriations made to the department for             

                                                                                

14  salaries and wages expenses, contractual services, supplies and             

                                                                                

15  materials expenses, information technology expenses and program             

                                                                                

16  operations costs.                                                           

                                                                                

17      (2)     The appropriations contained in subsection 1 are subject to                 

                                                                                

18  the approval of the state budget director and shall be spent for the        

                                                                                

19  same purposes for which the original appropriation was made in fiscal       

                                                                                

20  year 2002-2003.                                                             

                                                                                

21  MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS                              

                                                                                

22      Sec. 401. (1) The Michigan council for arts and cultural affairs in         

                                                                                

23  the department shall administer the arts and cultural grants                

                                                                                

24  appropriated in part 1.  The council shall provide for fair and             

                                                                                

25  independent decisions on arts and cultural grant requests based upon        

                                                                                

26  published criteria to evaluate program quality.  These criteria shall       

                                                                                

27  include a prohibition of art projects that include displays of human        


                                                                                

1   wastes on religious symbols, displays of sex acts, and depictions of        

                                                                                

2   flag desecration.  The council shall seek to award grants on an             

                                                                                

3   equitable geographic basis to the extent possible given the quality of      

                                                                                

4   grant applications received.  Priority shall be given to projects that      

                                                                                

5   serve multiple counties and that leverage significant additional public     

                                                                                

6   and private investment.  Counties, cities, villages, townships,             

                                                                                

7   community foundations, and organizations, including science                 

                                                                                

8   museums/centers, may apply for the following categories of grants:          

                                                                                

9       (a) Anchor organization program for organizations that serve                

                                                                                

10  regional and statewide audiences. Anchor organizations shall                

                                                                                

11  demonstrate a commitment to education, to mentoring smaller                 

                                                                                

12  organizations, and to reaching underserved audiences.                       

                                                                                

13      (b) Arts projects program.                                                  

                                                                                

14      (c) Arts and learning program.                                              

                                                                                

15      (d) Artists in residence for education program.                             

                                                                                

16      (e) Arts organization development program.                                  

                                                                                

17      (f) Capital improvement program.                                            

                                                                                

18      (g) Local arts agencies services program.                                   

                                                                                

19      (h) Regional regranting program.                                            

                                                                                

20      (i) Partnership program.                                                    

                                                                                

21      (j) Discretionary grants program.                                           

                                                                                

22      (k) Rural arts and cultural program.                                        

                                                                                

23      (l) Cultural projects program.                                              

                                                                                

24      (2) The appropriation for arts and cultural grants in part 1 and            

                                                                                

25  disbursed under this section shall, at a minimum, be matched on an          

                                                                                

26  equal dollar-for-dollar basis from local and private contributions paid     

                                                                                

27  and received by each awardee receiving grants under this section.  The      


                                                                                

1   dollar-for-dollar match may include the reasonable value of services,       

                                                                                

2   materials, and equipment as allowed under the federal internal revenue      

                                                                                

3   code for charitable contributions subject also to the preapproval of        

                                                                                

4   such a match by the Michigan council for arts and cultural affairs.         

                                                                                

5   The council shall receive proof of the entire amount of the matching        

                                                                                

6   funds, services, materials, or equipment by the end of the award            

                                                                                

7   period.                                                                     

                                                                                

8       (3) Before any amount appropriated for arts and cultural grants             

                                                                                

9   in part 1 may be expended for a grant to eligible applicants for the        

                                                                                

10  purposes in this section, the department shall execute a grant              

                                                                                

11  agreement with each grantee.  The grant agreement shall specify the         

                                                                                

12  criteria included in this section with which the application complies.      

                                                                                

13  The grant agreement shall include a list of the projects funded.            

                                                                                

14      (4) Counties, cities, villages, townships, community foundations,           

                                                                                

15  and organizations receiving funds under this section shall provide the      

                                                                                

16  Michigan council for arts and cultural affairs with the following:          

                                                                                

17      (a) A final report covering the grant period within 30 days after           

                                                                                

18  the end of the grant period indicating at least the following:              

                                                                                

19                                                                               (i) Project revenues and expenditures indicating grant matching                     

                                                                                

20  fund amounts.                                                               

                                                                                

21      (ii) Number of patrons attracted or benefiting during the grant              

                                                                                

22  period.                                                                     

                                                                                

23      (iii) A narrative summary of each project and its outcome.                   

                                                                                

24      (b) Awardees receiving grants greater than $100,000.00 shall also           

                                                                                

25  submit a report as identified in subdivision (a) on an interim basis by     

                                                                                

26  April 7 of the grant year.                                                  

                                                                                

27      (5) The applicants for arts and cultural grants funds shall be              


                                                                                

1   charged a nonrefundable application fee of $300.00 or 3% of the grant,      

                                                                                

2   whichever is less.  The application fee may be used by the department       

                                                                                

3   to recover direct and indirect costs as appropriated in part 1.             

                                                                                

4       (6) It is the intent of the legislature that the Michigan council           

                                                                                

5   for arts and cultural affairs continue to take appropriate steps to         

                                                                                

6   ensure that all organizations receiving state arts anchor organization      

                                                                                

7   grants have combined grant awards, as defined in subsection (8), of no      

                                                                                

8   more than 15.0% of operating revenue for the fiscal year ending             

                                                                                

9   September 30, 2005 and beyond.  As used in this subsection, "operating      

                                                                                

10  revenue" is defined in the same manner as it was defined during the         

                                                                                

11  fiscal year 2000 state arts anchor organization application process.        

                                                                                

12      (7) The council shall continue and expand its efforts to                    

                                                                                

13  encourage and support nonprofit arts and cultural organizations             

                                                                                

14  transitioning from solely volunteer-based organizations to professional     

                                                                                

15  directed operations.  This includes the provision of funds and services     

                                                                                

16  from the arts organization development, partnership, arts projects,         

                                                                                

17  anchor organization, and regional regranting programs as well as the        

                                                                                

18  rural arts and culture initiative to support professional development       

                                                                                

19  within these organizations.  Criteria for support include the               

                                                                                

20  requirement of collaboration between these organizations and other          

                                                                                

21  community organizations.                                                    

                                                                                

22      (8) Any organizations receiving grants within the anchor                    

                                                                                

23  organization program category in excess of 10.0% of their operating         

                                                                                

24  revenue, as defined in subsection (6), for the fiscal year ending           

                                                                                

25  September 30, 2003, shall not receive a combined grant award from all       

                                                                                

26  grant categories, except the partnership program, that is greater than      

                                                                                

27  the combined grant award from these categories that the organization        


                                                                                

1   received for the fiscal year ending September 30, 2003.                     

                                                                                

2       (9) The council shall provide for fair, equitable, and efficient            

                                                                                

3   distribution of funds granted through the regional regranting program.      

                                                                                

4   The council shall provide for an annual assessment of grant management      

                                                                                

5   and distribution of mini-grant awards by designated regional regranting     

                                                                                

6   agencies and review the methodology employed.                               

                                                                                

7       (10) The council shall make every effort to provide total grant             

                                                                                

8   awards in the anchor organization program at a level not to exceed 65%      

                                                                                

9   of the total amount appropriated for arts and cultural grants.              

                                                                                

10      (11) The department shall submit 2 annual reports to the                    

                                                                                

11  appropriations subcommittees, the state budget office, and the fiscal       

                                                                                

12  agencies as follows:                                                        

                                                                                

13      (a) The first report is due 30 days after the council makes the             

                                                                                

14  annual grant awards.  The report shall contain the following:               

                                                                                

15                                                                               (i) A listing of each applicant.                                                    

                                                                                

16      (ii) The county of residence of an applicant.                                

                                                                                

17      (iii) The amount awarded.                                                    

                                                                                

18      (iv) The amount requested.                                                   

                                                                                

19      (v) The grant category under which an applicant applied.                    

                                                                                

20      (vi) A summary of projects funded for each awardee.                          

                                                                                

21      (vii) The expected number of patrons for an applicant during the             

                                                                                

22  grant period.                                                               

                                                                                

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

                                                                                

24      (ix) The review score for each application.                                  

                                                                                

25      (x) A listing containing the information in subparagraphs (i) to             

                                                                                

26  (iii) for any regranted funds in the preceding fiscal year.                  

                                                                                

27      (b) The second report is due when materials are first distributed           


                                                                                

1   by the council seeking grant applications for the subsequent fiscal         

                                                                                

2   year. The report shall contain the following:                               

                                                                                

3                                                                                (i) The guidelines by which the council awards grants.                              

                                                                                

4       (ii) A summary of any changes in the program guidelines from the             

                                                                                

5   previous fiscal year.                                                       

                                                                                

6       (iii) A summary of any initiatives the council is taking to                  

                                                                                

7   improve public access to the arts and culture, including, but not           

                                                                                

8   limited to, the use of technology applications.                             

                                                                                

9   MICHIGAN HISTORICAL PROGRAM                                                 

                                                                                

10      Sec. 501. The federal funds appropriated in part 1 for the historic         

                                                                                

11  site preservation grants are for work projects and shall not lapse at       

                                                                                

12  the end of the fiscal year but shall continue to be available for           

                                                                                

13  expenditure until the projects for which the funds were reserved have       

                                                                                

14  been completed or are terminated.  The purpose of these work projects       

                                                                                

15  is the identification, designation, and preservation of historic            

                                                                                

16  resources.  The method used will be to solicit applications from            

                                                                                

17  eligible recipients, score applications based upon established              

                                                                                

18  criteria, and award the contracts and subgrants.  The total cost is         

                                                                                

19  $1,348,000.00 and the tentative completion date is September 30, 2004.      

                                                                                

20      Sec. 502. Funds collected by the department under sections 3, 6, 7,         

                                                                                

21  and 7a of 1913 PA 271, MCL 399.3, 399.6, 399.7, and 399.7a, are             

                                                                                

22  appropriated to the department for the purpose for which they were          

                                                                                

23  received and shall not lapse to the general fund at the end of the          

                                                                                

24  fiscal year.                                                                

                                                                                

25      Sec. 503. For purposes of administering the museum store as provided        

                                                                                

26  in section 7a of 1913 PA 271, MCL 399.7a, the department is exempt from     

                                                                                

27  section 261 of the management and budget act, 1984 PA 431, MCL 18.1261.     


                                                                                

1       Sec. 504. From the funds appropriated in part 1 for historical              

                                                                                

2   administration and services, $71,200.00 shall be allocated to support       

                                                                                

3   the operations of the Michigan freedom trail commission as specified in     

                                                                                

4   section 4 of the Michigan freedom trail commission act, 1998 PA 409,        

                                                                                

5   MCL 399.84.  These funds shall be used to reimburse commission members,     

                                                                                

6   to pay for necessary contractual services of the commission, and to         

                                                                                

7   hire not more than 1.0 FTE position in the department's Michigan            

                                                                                

8   historical center to support commission operations.                         

                                                                                

9       Sec. 505. Proceeds in excess of costs incurred in the conduct of            

                                                                                

10  auctions, sales, or transfers of artifacts no longer deemed suitable        

                                                                                

11  for the collections of the state historical museum are appropriated to      

                                                                                

12  the department and may be expended upon receipt on additional material      

                                                                                

13  for the collection.                                                         

                                                                                

14  LIBRARY OF MICHIGAN                                                         

                                                                                

15      Sec. 601. In order to receive subregional state aid as appropriated         

                                                                                

16  in part 1 to the library of Michigan, a subregional library's fiscal        

                                                                                

17  agency must agree to maintain local funding support at the same level       

                                                                                

18  in the current fiscal year as in the fiscal agency's preceding fiscal       

                                                                                

19  year.  If a reduction in expenditures equally affects all agencies in a     

                                                                                

20  unit of local government that is the subregional library's fiscal           

                                                                                

21  agency, that reduction shall not be interpreted as a reduction in local     

                                                                                

22  support and shall not disqualify a subregional library from receiving       

                                                                                

23  state aid under part 1.  If a reduction in income affects a library         

                                                                                

24  cooperative or district library that is a subregional library’s fiscal      

                                                                                

25  agency, a reduction in expenditures for the subregional library shall       

                                                                                

26  not be interpreted as a reduction in local support and shall not            

                                                                                

27  disqualify a subregional library from receiving state aid under part 1.     


                                                                                

1       Sec. 602. The funds appropriated in part 1 for a subregional library        

                                                                                

2   shall not be released until a budget for that subregional library has       

                                                                                

3   been approved by the department for expenditures for library services       

                                                                                

4   directly serving the blind and persons with disabilities.  Subregional      

                                                                                

5   state aid shall be used only for providing services to the blind and to     

                                                                                

6   persons with disabilities.                                                  

                                                                                

7       Sec. 603. Of the funds appropriated in part 1 for operation of the          

                                                                                

8   library of Michigan, a portion may be used for statewide database           

                                                                                

9   access such as making computerized databases, searches of those             

                                                                                

10  databases, and the products of those searches available through the         

                                                                                

11  libraries of Michigan.  Only those libraries that qualify under the         

                                                                                

12  federal library services and technology act, subtitle B of title II of      

                                                                                

13  the museum and library services act, title II of the arts, humanities,      

                                                                                

14  and cultural affairs act of 1976, Public Law 94-462, 110 Stat. 3009-        

                                                                                

15  295, are eligible to participate in these activities.                       

                                                                                

16      Sec. 604. From the state general fund/general purpose appropriation         

                                                                                

17  in part 1, there is allocated $1,640,000.00 to reimburse public             

                                                                                

18  libraries as provided by section 12 of the Michigan renaissance zone        

                                                                                

19  act, 1996 PA 376, MCL 125.2692, for property taxes levied in 2003.          

                                                                                

20  Reimbursements shall be made in amounts to each eligible recipient not      

                                                                                

21  later than 60 days after the department of treasury certifies to the        

                                                                                

22  department that it has received all necessary information to properly       

                                                                                

23  determine the amounts due each eligible recipient under section 12(4)       

                                                                                

24  of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2692. Any        

                                                                                

25  excess allocations shall lapse to the general fund.                         

                                                                                

26. Sec. 605. The department shall submit a report on or before                     

...                                                                             

27 October 31, 2004, to the senate and house standing committees on              


...                                                                             

1 appropriations that details the use of funds appropriated in part 1            

...                                                                             

2 within the Grand Rapids public library appropriation line and the grant        

...                                                                             

3 to the Detroit public library appropriation line.