HB-5519, As Passed Senate, June 1, 2004                                     

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SENATE SUBSTITUTE FOR                             

                                                                                

                               HOUSE BILL NO. 5519                              

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to make appropriations for the department of history,                      

                                                                                

    arts, and libraries for the fiscal year ending September 30, 2005; 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; to prescribe powers and duties of certain state        

                                                                                

    departments and certain state and local agencies and officers; and to       

                                                                                

    repeal acts and parts of acts.                                              

                                                                                

                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                    

                                                                                

1                                   PART 1                                      

                                                                                

2                          LINE-ITEM APPROPRIATIONS                             

                                                                                

3       Sec. 101.  Subject to the conditions set forth in this act, the             

                                                                                

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

                                                                                

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

                                                                                

6   2005, from the funds indicated in this part.  The following is a            

                                                                                


    House Bill No. 5519 as amended June 1, 2004                                 

1   summary of the appropriations in this part:                                 

                                                                                

2   DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES                                  

                                                                                

3   APPROPRIATION SUMMARY:                                                      

                                                                                

4       Full-time equated unclassified positions........6.0                     

                                                                                

5       Full-time equated classified positions........232.0                     

                                                                                

6     GROSS APPROPRIATION................................. $   <<57,137,800>>   

                                                                                

7       Interdepartmental grant revenues:                                       

                                                                                

8     Total interdepartmental grants and intradepartmental                      

                                                                                

9       transfers.........................................           138,800    

                                                                                

10    ADJUSTED GROSS APPROPRIATION........................ $   <<56,999,000>>   

                                                                                

11      Federal revenues:                                                       

                                                                                

12    Total federal revenues..............................         8,151,300    

                                                                                

13      Special revenue funds:                                                  

                                                                                

14    Total local revenues................................                 0    

                                                                                

15    Total private revenues..............................           577,400    

                                                                                

16    Total other state restricted revenues...............         2,409,200    

                                                                                

17    State general fund/general purpose.................. $   <<45,861,100>>   

                                                                                

18      Sec. 102.  DEPARTMENT OPERATIONS                                            

                                                                                

19      Full-time equated unclassified positions........6.0                     

                                                                                

20      Full-time equated classified positions.........29.0                     

                                                                                

21    Unclassified salaries............................... $         219,300    

                                                                                

22    Management services--28.0 FTE positions.............         1,882,500    

                                                                                

23    Building occupancy charges and rent.................         2,678,500    

                                                                                

24    Worker's compensation...............................            16,900    

                                                                                

25    Film office--1.0 FTE positions......................           134,200    

                                                                                

26    Human resources optimization user charges...........            29,400    

                                                                                

27    GROSS APPROPRIATION................................. $       4,960,800    


                                                                                

1         Appropriated from:                                                    

                                                                                

2       Special revenue funds:                                                  

                                                                                

3     State general fund/general purpose.................. $       4,960,800    

                                                                                

4       Sec. 103.  INFORMATION TECHNOLOGY                                           

                                                                                

5     Information technology services and projects........ $         950,600    

                                                                                

6     GROSS APPROPRIATION................................. $         950,600    

                                                                                

7         Appropriated from:                                                    

                                                                                

8       Interdepartmental grant revenues:                                       

                                                                                

9     IDG-MDOT, comprehensive transportation fund.........               200    

                                                                                

10    IDG-MDOT, state aeronautics fund....................               100    

                                                                                

11    IDG-MDOT, state trunkline fund......................             3,100    

                                                                                

12      Special revenue funds:                                                  

                                                                                

13    Game and fish protection fund.......................               100    

                                                                                

14    Mackinac Island state park fund.....................            39,500    

                                                                                

15    Special revenue, internal service and pension trust.             2,700    

                                                                                

16    State lottery fund..................................               900    

                                                                                

17    State general fund/general purpose.................. $         904,000    

                                                                                

18      Sec. 104.  COUNCIL FOR ARTS AND CULTURAL AFFAIRS                            

                                                                                

19      Full-time equated classified positions..........9.0                     

                                                                                

20    Administration--9.0 FTE positions................... $         707,800    

                                                                                

21    Arts and cultural grants............................        11,871,300    

                                                                                

22    GROSS APPROPRIATION................................. $      12,579,100    

                                                                                

23        Appropriated from:                                                    

                                                                                

24      Federal revenues:                                                       

                                                                                

25    NFAH-NEA, promotion of the arts, partnership                              

                                                                                

26      agreements........................................           700,000    

                                                                                

27      Special revenue funds:                                                  


                                                                                

1     State general fund/general purpose.................. $      11,879,100    

                                                                                

2       Sec. 105.  MACKINAC ISLAND STATE PARK COMMISSION                            

                                                                                

3       Full-time equated classified positions.........39.0                     

                                                                                

4     Mackinac Island park operation--24.3 FTE positions.. $       1,354,200    

                                                                                

5     Historical facilities system--14.7 FTE positions....         1,645,600    

                                                                                

6     GROSS APPROPRIATION................................. $       2,999,800    

                                                                                

7         Appropriated from:                                                    

                                                                                

8       Special revenue funds:                                                  

                                                                                

9     Mackinac Island state park operation fees...........           150,000    

                                                                                

10    Mackinac Island state park fund.....................         1,329,200    

                                                                                

11    State general fund/general purpose.................. $       1,520,600    

                                                                                

12      Sec. 106.  MICHIGAN HISTORICAL PROGRAM                                      

                                                                                

13      Full-time equated classified positions.........83.0                     

                                                                                

14    Historical administration and services--71.0 FTE                          

                                                                                

15      positions......................................... $       5,255,300    

                                                                                

16    Federal programs--12.0 FTE positions................         1,893,900    

                                                                                

17    Heritage publications...............................           700,000    

                                                                                

18    Private grants and gifts............................           502,400    

                                                                                

19    Thunder Bay national marine sanctuary and underwater                      

                                                                                

20      preserve..........................................           189,500    

                                                                                

21    Historical grants...................................            40,000    

                                                                                

22    GROSS APPROPRIATION................................. $       8,581,100    

                                                                                

23        Appropriated from:                                                    

                                                                                

24      Interdepartmental grant revenues:                                       

                                                                                

25    IDG-MDOT, comprehensive transportation fund.........             5,700    

                                                                                

26    IDG-MDOT, state aeronautics fund....................             3,400    

                                                                                

27    IDG-MDOT, state trunkline fund......................           126,300    


    House Bill No. 5519 as amended June 1, 2004                                 

1       Federal revenues:                                                       

                                                                                

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

                                                                                

3     Federal funds.......................................           545,900    

                                                                                

4       Special revenue funds:                                                  

                                                                                

5     Private - grants and gifts..........................           400,000    

                                                                                

6     Private - Mann house trust fund.....................           102,400    

                                                                                

7     Game and fish protection fund.......................             3,600    

                                                                                

8     Heritage publication fund...........................           700,000    

                                                                                

9     Marine safety fund..................................               500    

                                                                                

10    Special revenue, internal service and pension trust.            70,700    

                                                                                

11    State lottery fund..................................            24,300    

                                                                                

12    Waterways fund......................................               800    

                                                                                

13    State general fund/general purpose.................. $       5,249,500    

                                                                                

14      Sec. 107.  LIBRARY OF MICHIGAN                                              

                                                                                

15      Full-time equated classified positions.........72.0                     

                                                                                

16    Book distribution centers........................... $         327,400    

                                                                                

17    Collected gifts and fees............................           161,900    

                                                                                

18    Library of Michigan operations--72.0 FTE positions..         6,313,000    

                                                                                

19    Library services and technology act.................         5,557,400    

                                                                                

20    State aid to libraries..............................        13,832,100    

                                                                                

21    Subregional state aid...............................           504,900    

                                                                                

22    Wayne County library for the blind and physically                         

                                                                                

23      handicapped.......................................            44,700    

                                                                                

24    Preservation and access for Michigan project........        <<325,000>>   

                                                                                

25    GROSS APPROPRIATION................................. $   <<27,066,400>>   

                                                                                

26        Appropriated from:                                                    

                                                                                

27      Federal revenues:                                                       


    House Bill No. 5519 as amended June 1, 2004                                 

1     Library services and technology act.................         5,557,400    

                                                                                

2       Special revenue funds:                                                  

                                                                                

3     Private - gifts and bequests revenues...............            75,000    

                                                                                

4     User fees...........................................            86,900    

                                                                                

5     State general fund/general purpose.................. $   <<21,347,100>>   

                                                                                

                                                                                

                                                                                

6                                     PART 2                                    

                                                                                

7                      PROVISIONS CONCERNING APPROPRIATIONS                     

                                                                                

8   GENERAL SECTIONS                                                            

                                                                                

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

                                                                                

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

                                                                                

11  part 1 for fiscal year 2004-2005 is $49,770,300.00 and state spending       

                                                                                

12  from state resources to be paid to local units of government for            

                                                                                

13  fiscal year 2004-2005 is $18,068,200.00.  The itemized statement below      

                                                                                

14  identifies appropriations from which spending to units of local             

                                                                                

15  government will occur:                                                      

                                                                                

16  DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES                                  

                                                                                

17    Arts and cultural grants............................ $       3,686,500    

                                                                                

18    State aid to libraries..............................        13,832,100    

                                                                                

19    Subregional state aid...............................           504,900    

                                                                                

20    Wayne County library for the blind and physically                         

                                                                                

21      handicapped.......................................            44,700    

                                                                                

22    Total department of history, arts, and libraries.... $      18,068,200    

                                                                                

23      Sec. 202.  The appropriations authorized under this act are                 

                                                                                

24  subject to the management and budget act, 1984 PA 431, MCL 18.1101 to       

                                                                                

25  18.1594.                                                                    

                                                                                

26      Sec. 203.  As used in this appropriation act:                               

                                                                                

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


                                                                                

1   libraries.                                                                  

                                                                                

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

                                                                                

3   arts, and libraries.                                                        

                                                                                

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

                                                                                

5   national park service.                                                      

                                                                                

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

                                                                                

7   the senate fiscal agency.                                                   

                                                                                

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

                                                                                

9       (f)  "IDG" means interdepartmental grant.                                   

                                                                                

10      (g)  "MDOT" means the Michigan department of transportation.                

                                                                                

11      (h)  "NEA" means the national endowment for the arts.                       

                                                                                

12      (i)  "NFAH" means the national foundation of the arts and the               

                                                                                

13  humanities.                                                                 

                                                                                

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

                                                                                

15  subcommittees of the house and senate appropriations committees.            

                                                                                

16      Sec. 204.  The department of civil service shall bill the                   

                                                                                

17  departments at the end of the first fiscal quarter for the 1% charge        

                                                                                

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

                                                                                

19  1963.  Payments shall be made for the total amount of the billing by        

                                                                                

20  the end of the second fiscal quarter.                                       

                                                                                

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

                                                                                

22  civil service.  State departments and agencies are prohibited from          

                                                                                

23  hiring any new classified civil service employees and prohibited from       

                                                                                

24  filling any vacant state classified civil service positions.  This          

                                                                                

25  hiring freeze does not apply to internal transfers of classified            

                                                                                

26  employees from 1 position to another within a department.                   

                                                                                

27      (2) The hiring freeze described in subsection (1) does not apply            


                                                                                

1   to any classified state civil service position that meets any of the        

                                                                                

2   following criteria:                                                         

                                                                                

3       (a) Filling the vacant position will directly prevent the loss of           

                                                                                

4   federal funding.                                                            

                                                                                

5       (b) The vacant position deals directly with the direct provision            

                                                                                

6   of public safety services including prison officers, law enforcement        

                                                                                

7   officers, and child services enforcement workers.                           

                                                                                

8       (c) The vacant position provides direct health care services                

                                                                                

9   including physicians, nurses, and other direct health care providers.       

                                                                                

10      (3) The state budget director shall report quarterly to the                 

                                                                                

11  chairpersons of the senate and house of representatives standing            

                                                                                

12  committees on appropriations the number of new state classified civil       

                                                                                

13  service employees hired during the previous quarter and the reasons to      

                                                                                

14  justify the hiring.                                                         

                                                                                

15      Sec. 207.  At least 60 days before beginning any effort to                  

                                                                                

16  privatize, the department shall submit a complete project plan to the       

                                                                                

17  subcommittees and the fiscal agencies.  The plan shall include the          

                                                                                

18  criteria under which the privatization initiative will be evaluated.        

                                                                                

19  The evaluation shall be completed and submitted to the fiscal agencies      

                                                                                

20  and to the subcommittees within 30 months.                                  

                                                                                

21      Sec. 208.  Unless otherwise specified, the department receiving             

                                                                                

22  appropriations in part 1 shall use the Internet to fulfill the              

                                                                                

23  reporting requirements of this act.  This may include transmission of       

                                                                                

24  reports via electronic mail to the recipients identified for each           

                                                                                

25  reporting requirement or it may include placement of reports on the         

                                                                                

26  Internet or Intranet site.                                                  

                                                                                

27      Sec. 209.  Funds appropriated in part 1 shall not be used for the           


                                                                                

1   purchase of foreign goods or services, or both, if competitively            

                                                                                

2   priced and of comparable quality American goods or services, or both,       

                                                                                

3   are available.  Preference should be given to goods or services, or         

                                                                                

4   both, manufactured or provided by Michigan businesses if they are           

                                                                                

5   competitively priced and of comparable value.                               

                                                                                

6       Sec. 210.  The director shall take all reasonable steps to ensure           

                                                                                

7   businesses in deprived and depressed communities compete for and            

                                                                                

8   perform contracts to provide services or supplies, or both.  The            

                                                                                

9   director shall strongly encourage firms with which the department           

                                                                                

10  contracts to subcontract with certified businesses in depressed and         

                                                                                

11  deprived communities for services, supplies, or both.                       

                                                                                

12      Sec. 211.  The department shall establish and maintain                      

                                                                                

13  affirmative action programs based on guidelines developed by the state      

                                                                                

14  equal opportunity workforce planning council which was created by           

                                                                                

15  Executive Order No. 1996-13 in order to receive general fund/general        

                                                                                

16  purpose dollars.                                                            

                                                                                

17      Sec. 213.  From the funds appropriated in part 1 for information            

                                                                                

18  technology, the department shall pay user fees to the department of         

                                                                                

19  information technology for technology related services and projects.        

                                                                                

20  The user fees shall be subject to provisions of an interagency              

                                                                                

21  agreement between the departments and agencies and the department of        

                                                                                

22  information technology.                                                     

                                                                                

23      Sec. 214.  Amounts appropriated in part 1 for information                   

                                                                                

24  technology may be designated as work projects and carried forward to        

                                                                                

25  support technology projects under the direction of the department of        

                                                                                

26  information technology.  Funds designated in this manner are not            

                                                                                

27  available for expenditure until approved as work projects under             


                                                                                

1   section 451a of the management and budget act, 1984 PA 431,                 

                                                                                

2   MCL 18.1451a.                                                               

                                                                                

3       Sec. 215.  The department may provide and enter into agreements             

                                                                                

4   to provide general services, training, meetings, information, special       

                                                                                

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

                                                                                

6   services to other principal executive departments, state agencies,          

                                                                                

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

                                                                                

8   organizations, and patrons of department facilities.  Fees for              

                                                                                

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

                                                                                

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

                                                                                

11  department may receive and expend funds in addition to those                

                                                                                

12  authorized in part 1 for the following:                                     

                                                                                

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

                                                                                

14  publications, statistical studies, population projections and               

                                                                                

15  estimates, and other demographic products.                                  

                                                                                

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

                                                                                

17  media, storage, and copies.                                                 

                                                                                

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

                                                                                

19      (d) Conferences, training classes, and workshops conducted as part          

                                                                                

20  of the department's mission.                                                

                                                                                

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

                                                                                

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

                                                                                

23  Funds not expended at year-end may be carried forward and expended for      

                                                                                

24  the same purposes for which they were originally received.                  

                                                                                

25      (f) Special services including the rental of department exhibits            

                                                                                

26  and collections.  Funds not expended at year-end may be carried             

                                                                                

27  forward and expended for the same purposes for which they were              


                                                                                

1   originally received.  The funds received under this section may be          

                                                                                

2   deposited and expended from the history, arts, and libraries service        

                                                                                

3   fund created in section 216.                                                

                                                                                

4       Sec. 216.  A fund known as the history, arts, and libraries                 

                                                                                

5   service fund is created in the department.  The fund may be used to         

                                                                                

6   receive and expend funds in addition to those authorized in part 1.         

                                                                                

7   The fund balance may be carried forward by the department for               

                                                                                

8   expenditure in subsequent fiscal years.                                     

                                                                                

9       Sec. 217.  (1) The department shall not spend any of the funds              

                                                                                

10  appropriated in part 1 for travel outside the state of Michigan.            

                                                                                

11      (2) From the funds appropriated in part 1, the department shall             

                                                                                

12  spend on travel in fiscal year 2004-2005 no more than 50% of the            

                                                                                

13  amount spent on travel in fiscal year 2003-2004.                            

                                                                                

14      Sec. 218.  It is the intent of the legislature to explore                   

                                                                                

15  supplemental fund sourcing options for the department of history,           

                                                                                

16  arts, and libraries.                                                        

                                                                                

                                                                                

                                                                                

17  MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS                              

                                                                                

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

                                                                                

19  in the department shall administer the arts and cultural grants             

                                                                                

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

                                                                                

21  independent decisions on arts and cultural grant requests based upon        

                                                                                

22  published criteria to evaluate program quality.  These criteria shall       

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   serve multiple counties and that leverage significant additional            

                                                                                

3   public and private investment.  Counties, cities, villages, townships,      

                                                                                

4   community foundations, and organizations, including science                 

                                                                                

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

                                                                                

6       (a) Anchor organization program for organizations that serve                

                                                                                

7   regional and statewide audiences.  Anchor organizations shall               

                                                                                

8   demonstrate a commitment to education, to mentoring smaller                 

                                                                                

9   organizations, and to reaching underserved audiences.                       

                                                                                

10      (b) Arts projects program.                                                  

                                                                                

11      (c) Arts and learning program.                                              

                                                                                

12      (d) Artists in residence for education program.                             

                                                                                

13      (e) Arts organization development program.                                  

                                                                                

14      (f) Capital improvement program.                                            

                                                                                

15      (g) Local arts agencies services program.                                   

                                                                                

16      (h) Regional regranting program.                                            

                                                                                

17      (i) Partnership program.                                                    

                                                                                

18      (j) Discretionary grants program.                                           

                                                                                

19      (k) Rural arts and cultural program.                                        

                                                                                

20                                                                               (l) Cultural projects program.                                                      

                                                                                

21      (m) Historical projects program.                                            

                                                                                

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

                                                                                

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

                                                                                

24  equal dollar-for-dollar basis from local and private contributions          

                                                                                

25  paid and received by each awardee receiving grants under this               

                                                                                

26  section.  The dollar-for-dollar match may include the reasonable value      

                                                                                

27  of services, materials, and equipment as allowed under the federal          


                                                                                

1   internal revenue code for charitable contributions subject also to the      

                                                                                

2   preapproval of the match by the Michigan council for arts and cultural      

                                                                                

3   affairs.  The council shall receive proof of the entire amount of the       

                                                                                

4   matching funds, services, materials, or equipment by the end of the         

                                                                                

5   award period.                                                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  criteria included in this section with which the application                

                                                                                

11  complies.  The grant agreement shall include a list of the projects         

                                                                                

12  funded.                                                                     

                                                                                

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

                                                                                

14  and organizations receiving funds under this section shall provide the      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

18                                                                               (i) Project revenues and expenditures indicating grant matching                     

                                                                                

19  fund amounts.                                                               

                                                                                

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

                                                                                

21  period.                                                                     

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

25  by April 7 of the grant year.                                               

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

5   ensure that all organizations receiving state arts anchor organization      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10  fiscal year 2000 state arts anchor organization application process.        

                                                                                

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

                                                                                

12  and support nonprofit arts and cultural organizations transitioning         

                                                                                

13  from solely volunteer-based organizations to professionally directed        

                                                                                

14  operations.  This includes the provision of funds and services from         

                                                                                

15  the arts organization development, partnership, arts projects, anchor       

                                                                                

16  organization, and regional regranting programs as well as the rural         

                                                                                

17  arts and culture initiative to support professional development within      

                                                                                

18  these organizations.  Criteria for support include the requirement of       

                                                                                

19  collaboration between these organizations and other community               

                                                                                

20  organizations.                                                              

                                                                                

21      (8) Any organizations receiving grants within the anchor                    

                                                                                

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

                                                                                

23  revenue for the fiscal year ending September 30, 2004 shall not             

                                                                                

24  receive a combined grant award from all grant categories, except the        

                                                                                

25  partnership program, that is greater than the combined grant award          

                                                                                

26  from these categories that the organization received for the fiscal         

                                                                                

27  year ending September 30, 2004.  As used in this subsection,                


                                                                                

1   "operating revenue" is defined in the same manner as it was defined         

                                                                                

2   during the fiscal year 2000 state arts anchor organization application      

                                                                                

3   process.                                                                    

                                                                                

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

                                                                                

5   distribution of funds granted through the regional regranting               

                                                                                

6   program.  The council shall provide for an annual assessment of grant       

                                                                                

7   management and distribution of mini-grant awards by designated              

                                                                                

8   regional regranting agencies and review the methodology employed.           

                                                                                

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

                                                                                

10  awards in the anchor organization program at a level not to exceed 70%      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  agencies as follows:                                                        

                                                                                

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

                                                                                

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

                                                                                

17                                                                               (i) A listing of each applicant.                                                    

                                                                                

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

                                                                                

19      (iii) The amount awarded.                                                    

                                                                                

20      (iv) The amount requested.                                                   

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

24  grant period.                                                               

                                                                                

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

                                                                                

26      (ix) The review score for each application.                                  

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3   by the council seeking grant applications for the subsequent fiscal         

                                                                                

4   year.  The report shall contain the following:                              

                                                                                

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

                                                                                

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

                                                                                

7   previous fiscal year.                                                       

                                                                                

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

                                                                                

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

                                                                                

10  limited to, the use of technology applications.                             

                                                                                

11      (12) Within 1 business day following the final council vote, the            

                                                                                

12  department shall notify each legislator electronically regarding the        

                                                                                

13  website location of the list of grant awardees by county receiving a        

                                                                                

14  grant from arts and cultural grant funds appropriated in part 1.            

                                                                                

15      (13) From the state funds appropriated in part 1 for arts and               

                                                                                

16  cultural grants, no 1 organization may receive more than 18% of this        

                                                                                

17  funding.  It is the intent of the legislature that this percentage be       

                                                                                

18  reduced to 17% in fiscal year 2006, 16% in fiscal year 2007, and 15%        

                                                                                

19  in fiscal year 2008.                                                        

                                                                                

20      (14) Of the funds appropriated in part 1 for the arts and cultural          

                                                                                

21  grants, discretionary grants program, funding shall be restricted to        

                                                                                

22  only those costs associated with fees or dues required for membership       

                                                                                

23  in the nonprofit midwest regional art organization.                         

                                                                                

24      (15) The council shall report to the house and senate                       

                                                                                

25  appropriations subcommittees on history, arts, and libraries by August      

                                                                                

26  1 all unexpended or unencumbered grant funding that is available.  The      

                                                                                

27  council shall not redistribute any unexpended or unencumbered grant         


                                                                                

1   funds during the fiscal year without a 10-day notice to these               

                                                                                

2   subcommittees.                                                              

                                                                                

                                                                                

                                                                                

3   MICHIGAN HISTORICAL PROGRAM                                                 

                                                                                

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

                                                                                

5   historic site preservation grants are for work projects and shall not       

                                                                                

6   lapse at the end of the fiscal year but shall continue to be available      

                                                                                

7   for expenditure until the projects for which the funds were reserved        

                                                                                

8   have been completed or are terminated.  The purpose of these work           

                                                                                

9   projects is the identification, designation, and preservation of            

                                                                                

10  historic resources.  The method used will be to solicit applications        

                                                                                

11  from eligible recipients, score applications based upon established         

                                                                                

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

                                                                                

13  $1,348,000.00 and the tentative completion date is September 30,            

                                                                                

14  2006.                                                                       

                                                                                

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

                                                                                

16  and 7a of 1913 PA 271, MCL 399.6, 399.7, and 399.7a, are appropriated       

                                                                                

17  to the department for the purpose for which they were received and may      

                                                                                

18  be carried forward for expenditure in subsequent fiscal years.              

                                                                                

19      Sec. 503.  For the purposes of administering the museum store as            

                                                                                

20  provided in section 7a of 1913 PA 271, MCL 399.7a, the department is        

                                                                                

21  exempt from section 261 of the management and budget act, 1984 PA 431,      

                                                                                

22  MCL 18.1261.                                                                

                                                                                

23      Sec. 504.  (1) From the state funds appropriated in part 1, the             

                                                                                

24  department may award discretionary historical grants to preserve            

                                                                                

25  Michigan lighthouses.  The department may award up to $91,500.00 in         

                                                                                

26  grants for this purpose and may use a portion of those funds to assist      


                                                                                

1   in the transfer of lighthouses from federal ownership.  A portion of        

                                                                                

2   the funds may also be dedicated to program administration and project       

                                                                                

3   coordination.                                                               

                                                                                

4       (2) The department shall allocate grant funds under this section            

                                                                                

5   pursuant to eligibility and scoring requirements established by the         

                                                                                

6   department.  The method used will be to solicit applications from           

                                                                                

7   eligible recipients, score applications based on the established            

                                                                                

8   criteria, and award grants through executed contracts.                      

                                                                                

9       (3) Grants under this section may be awarded for purposes of                

                                                                                

10  stabilization, rehabilitation, or other preservation work on a              

                                                                                

11  Michigan lighthouse, but shall not be awarded for operational               

                                                                                

12  purposes.  The department shall not allocate a grant under this             

                                                                                

13  section that exceeds $40,000.00.                                            

                                                                                

14      (4) The funds appropriated in part 1 and allocated by this section          

                                                                                

15  are for work projects.  The funds shall not lapse to the general fund       

                                                                                

16  at the end of the fiscal year but shall remain available in subsequent      

                                                                                

17  fiscal years, until funds have been expended, the projects for which        

                                                                                

18  the funds were reserved have been completed, or the projects are            

                                                                                

19  terminated, whichever occurs first.                                         

                                                                                

20      Sec. 505.  From the funds appropriated in part 1 for historical             

                                                                                

21  administration and services, $49,700.00 shall be allocated to support       

                                                                                

22  the operations of the Michigan freedom trail commission as specified        

                                                                                

23  in section 4 of the Michigan freedom trail commission act, 1998             

                                                                                

24  PA 409, MCL 399.84.  These funds shall be used to reimburse commission      

                                                                                

25  members, to pay for necessary contractual services of the commission,       

                                                                                

26  and to hire not more than 1.0 FTE position in the department's              

                                                                                

27  Michigan historical center to support commission operations.                


                                                                                

1       Sec. 506.  Proceeds in excess of costs incurred in the conduct of           

                                                                                

2   auctions, sales, or transfers of artifacts no longer considered             

                                                                                

3   suitable for the collections of the state historical museum are             

                                                                                

4   appropriated to the department and may be expended upon receipt for         

                                                                                

5   additional material for the collection.  The department shall notify        

                                                                                

6   the chairpersons, vice chairpersons, and minority vice chairpersons of      

                                                                                

7   the senate and house appropriations subcommittees on history, arts,         

                                                                                

8   and libraries 1 week prior to any auctions or sales.                        

                                                                                

9       Sec. 507.  Unless prohibited by law, the department shall make              

                                                                                

10  available to the historical society of Michigan the use of the              

                                                                                

11  Michigan history magazine subscriber list, or a portion of the              

                                                                                

12  Michigan history magazine subscriber list, at a cost not to exceed the      

                                                                                

13  actual expense incurred for providing a single mailing.                     

                                                                                

14      Sec. 508.  From the funds appropriated in part 1 in the                     

                                                                                

15  historical administration and services line item, $100,000.00 shall be      

                                                                                

16  used to fund a competitive historical grant program.  Eligible              

                                                                                

17  applicants include all state and local historical societies and the         

                                                                                

18  state historical preservation network.  Awards shall be made for            

                                                                                

19  projects that can leverage additional public and private investment         

                                                                                

20  and may involve, but are not limited to, capital improvements               

                                                                                

21  projects, restorations, research, educational programs, and                 

                                                                                

22  publications.                                                               

                                                                                

23      Sec. 509.  Of the funds appropriated in part 1 for the historical           

                                                                                

24  grants, $25,000.00 shall be allocated to support Michigan History Day,      

                                                                                

25  and $15,000.00 shall be allocated to the Arenac County Historical           

                                                                                

26  Society for the Charity Island lighthouse preservation project.             

                                                                                

                                                                                


                                                                                

1   LIBRARY OF MICHIGAN                                                         

                                                                                

2       Sec. 601.  In order to receive subregional state aid as                     

                                                                                

3   appropriated in part 1 to the library of Michigan, a subregional            

                                                                                

4   library's fiscal agency must agree to maintain local funding support        

                                                                                

5   at the same level in the current fiscal year as in the fiscal agency's      

                                                                                

6   preceding fiscal year.  If a reduction in expenditures equally affects      

                                                                                

7   all agencies in a local unit of government that is the subregional          

                                                                                

8   library's fiscal agency, that reduction shall not be interpreted as a       

                                                                                

9   reduction in local support and shall not disqualify a subregional           

                                                                                

10  library from receiving state aid under part 1.  If a reduction in           

                                                                                

11  income affects a library cooperative or district library that is a          

                                                                                

12  subregional library's fiscal agency or a reduction in expenditures for      

                                                                                

13  the subregional library's fiscal agency, a reduction in expenditures        

                                                                                

14  for the subregional library shall not be interpreted as a reduction in      

                                                                                

15  local support and shall not disqualify a subregional library from           

                                                                                

16  receiving state aid under part 1.                                           

                                                                                

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

                                                                                

18  library shall not be released until a budget for that subregional           

                                                                                

19  library has been approved by the department for expenditures for            

                                                                                

20  library services directly serving the blind and persons with                

                                                                                

21  disabilities.  Subregional state aid shall be used only for providing       

                                                                                

22  services to the blind and to persons with disabilities.                     

                                                                                

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

                                                                                

24  of the library of Michigan, a portion may be used for statewide             

                                                                                

25  database access such as making computerized databases, searches of          

                                                                                

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

                                                                                

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


                                                                                

1   the federal library services and technology act, subtitle B of title        

                                                                                

2   II of the museum and library services act, title II of the arts,            

                                                                                

3   humanities, and cultural affairs act of 1976, Public Law 94-462, 110        

                                                                                

4   Stat. 3009-295, are eligible to participate in these activities.            

                                                                                

5       Sec. 607.  Of the funds appropriated in part 1 for book                     

                                                                                

6   distribution centers, the public enrichment foundation shall receive        

                                                                                

7   $165,650.00 and the Michigan friends of education shall receive             

                                                                                

8   $161,750.00.                                                                

                                                                                

9       Sec. 609.  The appropriation in part 1 for the preservation and             

                                                                                

10  access for Michigan project shall be used to digitize materials             

                                                                                

11  currently in the possession of libraries in the state and to preserve,      

                                                                                

12  store, and make these digitized images accessible via the Michigan          

                                                                                

13  electronic library.  The subject materials are to be significant in         

                                                                                

14  the state's history, the only existing copies of unique items, or of        

                                                                                

15  broad interest to the citizens of Michigan.  To the extent possible,        

                                                                                

16  the department shall seek to award these funds on an equitable              

                                                                                

17  geographic basis given the quality of proposals received.  No single        

                                                                                

18  recipient shall receive funding in excess of 20% of the total               

                                                                                

19  appropriation.