SB-0048, As Passed Senate, July 26, 2006
SUBSTITUTE FOR
SENATE BILL NO. 48
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 2005 PA 67.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. (1) The state may lease facilities from the building
Senate Bill No. 48 as amended July 26, 2006
authority for public purposes within the concepts provided in this
act, upon terms and conditions agreed upon and subject to the
limitations and provisions provided in section 6. Before execution,
a lease shall be approved by the state administrative board and,
except as provided in subsections (3) and (4), by concurrent
resolution of the legislature concurred in by a majority of the
members elected to and serving in each house. The votes and names
of the members voting shall be entered in the journal. The lease as
approved by the building authority and the administrative board,
and if required, the legislature or an institution of higher
education, may provide for a determinable true rental as a range as
permitted under section 1(e).
(2) If a lease is approved containing a true rental stated as
a range, then actual rental to be paid under the lease shall be
fixed at an amount certified by the appraiser and, after the
certification, shall be approved by the state administrative board
and the building authority. The appraiser shall not certify, and
the board and authority shall not approve, a true rental amount
unless the amount is fixed within or below the stated range. <<A
>> lease shall not be executed
more than 3 years after its approval by the legislature. The state
shall pay to the building authority or its assignee the true rental
at the times, in the manner, and at the place specified in the
lease. The governor and the budget director shall include in the
annual budget of the state for each year an amount fully sufficient
to pay the true rental required to be paid by the state to the
building authority or its assignee required by any lease under this
act. If the lease is for an institution of higher education, then
in addition, the lease shall be authorized by the institution of
higher education and signed by its authorized officers.
(3) The state, except institutions of higher education, may
lease from the building authority property that is comprised only
of furnishings or equipment if all of the following requirements
are met:
(a) Before a lease that is only for furnishings or equipment
is executed, the general form of the lease shall be approved by
concurrent resolution of the legislature concurred in by a majority
of the members elected to and serving in each house. The form of
the lease approved by the legislature need not contain a
description of the property to be leased or the rental or a rental
range. However, before the state executes the lease, the
description of the property to be leased and the rental shall be
approved by the state administrative board as provided in
subsection (2). The concurrent resolution of the legislature
approving the form of lease shall also approve a maximum amount of
furnishings and equipment that may be leased during the 2 years
following the approval of the lease pursuant to the form of lease
approved.
(b) A lease that is only for furnishings or equipment shall be
executed only if the furnishings or equipment are for use by a
state agency as determined under the management and budget act,
1984 PA 431, MCL 18.1101 to 18.1594.
(4) Through September 30, 2007, an institution of higher
education, this state, and the building authority may enter into a
lease for capital maintenance improvements if, before a lease that
is only for capital maintenance improvements is executed, the
general form of the lease is approved by concurrent resolution of
the legislature concurred in by a majority of the members elected
to and serving in each house. The form of the lease approved by the
legislature need not contain a description of the capital
maintenance improvements to be leased or the rental or a rental
range. However, before this state executes the lease, the
description of the capital maintenance improvements to be leased
and the rental shall be approved by the state administrative board.
(5) The building authority shall retain title to capital
maintenance improvements during the term of a lease approved under
subsection (4). The building authority shall not be required to
have any ownership interest in the structure to which a capital
maintenance improvement is made. Title to the capital maintenance
improvement shall be evidenced by a bill of sale.
(6) The actual rental to be paid under a lease approved under
subsection (4) for a capital maintenance improvement shall be
determined by an appraiser or by an alternate method and, after the
determination, shall be approved by the state administrative board
and the building authority. The state administrative board shall
approve any alternate method for determining actual rental, and an
alternate method may include a determination by a person or
business that is in the business of providing capital maintenance
improvements to institutions of higher education.
(7) The state shall pay to the building authority or its
assignee the true rental at the times, in the manner, and at the
place specified in the lease approved under subsection (4). The
governor and the budget director shall include in the annual budget
of the state for each year an amount fully sufficient to pay the
true rental required to be paid by this state to the building
authority or its assignee required by any lease under this act.
(8) Notwithstanding subsection (3), an institution of higher
education, this state, and the building authority may enter into a
lease for furnishings, hardware, or other types of equipment if all
of the following are met:
(a) Before the building authority executes the lease, the
description of the property to be leased and the rental shall also
be approved by the institution of higher education as provided in
subsection (2).
(b) The lease of furnishings, hardware, or other types of
equipment shall only be used for the interconnection of
noncommercial television and radio broadcasting stations with other
noncommercial television and radio broadcasting stations and 1-way
digital broadcasting.
(9) Notwithstanding any other provision of this act, an
institution of higher education may not lease from the building
authority any furnishings, hardware, or other type of equipment
used to construct, own, or operate a cable television system or a
broadband internet access transport service.
(10) As used in this section:
(a) "Broadband internet access transport service" means the
broadband transmission of data between an end-user and the end-
user's internet service provider's point of interconnection at a
speed of 200 or more kilobits per second to the end-user's
premises.
(b) "Cable television system" means a facility or facilities,
consisting of a set of closed transmission paths using wire or
fiber and associated signal generation, reception, and control
equipment that is designed to provide cable service which includes
video programming and which is provided to multiple locations but
does not include an interconnection of noncommercial television and
radio broadcasting stations.