HOUSE BILL No. 4144

January 25, 2007, Introduced by Reps. Knollenberg, Agema, Calley, Shaffer, Marleau, Meltzer, Pastor, Moss, LaJoy, Booher, Wenke, Green, Sheen and Stakoe and referred to the Committee on Government Operations.

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending section 221 (MCL 18.1221), as amended by 1999 PA 8.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 221. (1) The director may provide for the rental and

 

lease of land and facilities for the use of state agencies in the

 

manner provided by law. The rentals and leases shall not be

 

effective unless approved by the board.

 

     (2) If a project costs more than $1,000,000.00 and consists of

 

less than 25,000 gross square feet, the department shall notify the

 

joint capital outlay subcommittee in writing of its intent to

 

proceed with such a facility. The notice shall be given 30 days

 

before the lease contract providing for the proposed constructions

 


is entered into.

 

     (3) If the director proposes to lease or rent space or a

 

facility which meets either of the following criteria, approval of

 

the joint capital outlay subcommittee is required prior to board

 

approval:

 

     (a) The space or facility exceeds 25,000 gross square feet.

 

     (b) The annual base cost of the proposed lease or rental

 

agreement is more than $500,000.00.

 

     (4) For the purposes of this section, the renewal of an

 

existing lease or rental agreement will require the approval of the

 

joint capital outlay subcommittee if the renewal results in changes

 

to the lease or rental agreement that would cause it to meet the

 

requirements outlined in subsection (3).

 

     (5) The department may grant easements, upon terms and

 

conditions the board determines are just and reasonable, for

 

highway and road purposes, and for constructing, operating, and

 

maintaining pipelines or electric, telephone, telegraph,

 

television, gas, sanitary sewer, storm sewer, or other utility

 

lines including all supporting fixtures and other appurtenances

 

over, through, under, upon, and across any land belonging to this

 

state, except lands under the jurisdiction of the department of

 

natural resources, the department of military affairs, or the state

 

transportation department.

 

     (6) The department shall determine annually the prevailing

 

market rental values of all state owned office facilities and

 

private facilities which provide housing for state employees. The

 

rental values determined pursuant to this subsection shall not be

 


effective unless approved by the board. The renting, leasing, or

 

licensing of state owned land and facilities to private and public

 

entities shall be at prevailing market rental values or at actual

 

costs as determined by the director.

 

     (7) The department shall charge state agencies for building

 

occupancy in state owned facilities under the jurisdiction of the

 

department. The rates to be charged for building occupancy shall be

 

coordinated with the budget cycle. The rates shall reflect the

 

actual cost for occupancy of the facilities.