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SB-0235, As Passed Senate, March 24, 2005

SUBSTITUTE FOR

SENATE BILL NO. 235

A bill to make, supplement, and adjust appropriations for

certain capital outlay programs and state departments and agencies

for the fiscal year ending September 30, 2005; to implement the

appropriations within the budgetary process; to prescribe standards

and conditions relating to the appropriations; and to provide for

the expenditure of appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

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

amounts listed in this part are appropriated for certain capital

outlay projects at the various state agencies for the fiscal year

ending September 30, 2005, from the funds indicated in this part.

The following is a summary of the appropriations in this part:

APPROPRIATION SUMMARY

GROSS APPROPRIATION.................................... $ 2,600

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 0

ADJUSTED GROSS APPROPRIATION........................... $ 2,600

Total federal revenues................................. 0

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

Total private revenues................................. 0

Total state restricted revenues........................ 0

State general fund/general purpose..................... $ 2,600

Sec. 102. STATE AGENCY, COMMUNITY COLLEGE, AND

UNIVERSITY PLANNING PROJECTS

Alpena Community College - instructional

addition/renovation project - for program and

planning to be paid for from college revenues........ $ 100

Bay de Noc Community College - new west campus

facility - for program and planning to be paid for

from college revenues................................ 100

Jackson Community College - health program

expansion and information commons - for program

and planning to be paid for from college revenues.... 100

Lansing Community College - university center - for

program and planning to be paid for from college

revenues............................................. 100

Macomb Community College - health science and

technology classroom building - for program and

planning to be paid for from college revenues........ 100

Mid Michigan Community College - science and

technology center - for program and planning to be

paid for from college revenues....................... 100

Montcalm Community College - life science training

facility - for program and planning to be paid for

from college revenues................................ 100

Northwestern Michigan College - Oleson center

renovations - for program and planning to be paid

for from college revenues............................ 100

Schoolcraft College - technical services facility -

for program and planning to be paid for from

college revenues..................................... 100

Southwestern Michigan College - information

technology center renovations - for program and

planning to be paid for from college revenues........ 100

Washtenaw Community College - technical and

industrial building renovations - for program and

planning to be paid for from college revenues........ 100

West Shore Community College - new student learning

center - for program and planning to be paid for

from college revenues................................ 100

Central Michigan University - education building -

for program and planning to be paid for from

university revenues.................................. 100

Ferris State University – instructional resource

center - for program and planning to be paid for

from university revenues............................. 100

Grand Valley State University - Padnos college of

engineering - for program and planning to be paid

for from university revenues......................... 100

Michigan State University - chemistry building

renovations/cooling tower project - for program

and planning to be paid for from university revenues. 100

Michigan Technological University - general campus

renovations - for program and planning to be paid

for from university revenues......................... 100

Saginaw Valley State University - pioneer hall

renovations - for program and planning to be paid

for from university revenues......................... 100

University of Michigan Ann Arbor - student

activities building/observatory lodge/phoenix

memorial lab renovations - for program and planning

to be paid for from university revenues.............. 100

University of Michigan Flint – French hall/Murchie hall

renovations - for program and planning to be paid for

from university revenues............................. 100

Wayne State University - engineering development

center - for program and planning to be paid for

from university revenues............................. 100

Western Michigan University - Brown hall

building/center for new media project - for

program and planning to be paid for from university

revenues............................................. 100

GROSS APPROPRIATION.................................... $ 2,200

Appropriated from:

State general fund/general purpose..................... $ 2,200

Sec. 103. STATE BUILDING AUTHORITY FINANCED

CONSTRUCTION PROJECTS

Gogebic Community College special maintenance

projects (total authorized cost $1,000,000; state

building authority share $999,900; state general

fund share $100)..................................... $ 100

Lake Superior State University special maintenance

projects (total authorized cost $163,100; state

building authority share $163,000; state general fund

share $100).......................................... 100

Department of management and budget - state

facility preservation projects - phase I (total

authorized cost $56,220,000; state building

authority share $56,219,900; state general fund

share $100).......................................... 100

State facility preservation projects - phase I:

State capitol building roof repairs, security

upgrades, dome restoration, and other improvements

State facility security upgrades and system

integration including access control

State facility energy savings plan and conservation

measures

Lighting, heating, ventilation, air handling,

ceilings, fire system, various facilities

statewide

Roof replacements, various facilities statewide

Parking lots, drainage repairs, various facilities

statewide

Electrical improvements, capitol complex

Fire detection and suppression systems, various

locations statewide

Elevator ADA compliance, various state office

buildings

Window systems, exterior repairs, various state

office buildings

Heating, ventilation, air conditioning upgrades,

including distribution systems and boiler

upgrades, various locations statewide

Restroom ADA compliance, various state office

buildings

Miscellaneous repairs and system replacements

Department of information technology - Michigan

public safety communications system critical

platform upgrades (total authorized cost

$13,780,000; state building authority share

$13,779,900; state general fund share $100).......... 100

GROSS APPROPRIATION.................................... $ 400

Appropriated from:

State general fund/general purpose..................... $ 400

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. (1) Pursuant to section 30 of article IX of the state

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2004-2005 is $2,600.00 and state

spending from state resources paid to units of local government for

fiscal year 2004-2005 is $0.00.

(2) If it appears to the principal executive officer of a

department or branch that state spending to local units of

government will be less than the amount that was projected to be

expended under subsection (1), the principal executive officer

shall immediately give notice of the approximate shortfall to the

state budget director.

Sec. 202. The appropriations authorized under this act are

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

to 18.1594.

Sec. 203. As used in this act:

(a) "ADA" means the Americans with disabilities act.

(b) "Board" means the state administrative board.

university.

(d) "Department" means the department of management and

budget.

(e) "Director" means the director of the department of

management and budget.

(f) "DAG" means the United States department of agriculture.

(g) "DOD" means the United States department of defense.

(h) "DOI" means the United States department of interior.

(i) "DOT" means the United States department of

transportation.

(j) "Fiscal agencies" means the senate fiscal agency and the

house fiscal agency.

(k) "HHS-HCFA" means the United States department of health

and human services, health care financing administration.

(l) "ICF/MR" means intermediate care facilities for the

mentally retarded.

(m) "IDG" means interdepartmental grant.

(n) "JCOS" means the joint capital outlay subcommittee of the

appropriations committees.

(o) "MDOT" means the Michigan department of transportation.

(p) "Self-liquidating project" means a project constructed by

a community college or university with money raised through the use

of a debt instrument or other fund sources including, but not

limited to, gifts, grants, federal funds, or institutional sources,

that is expected to generate revenues to amortize the loan. A self-

liquidating project may or may not be a self-supporting project.

Examples of a self-liquidating project include dormitories, parking

facilities, and stadia.

(q) "Self-supporting project" means a project of a community

college or university that will house a function or activity from

which revenue is generated that will cover all the direct and

indirect operating costs of the project without the additional

transfer of any other general fund money of the community college

or university.

(r) "State agency" means an agency of state government. State

agency does not include a community college or university.

(s) "State building authority" means the authority created

under 1964 PA 183, MCL 830.411 to 830.425.

(t) "University" means a 4-year university supported by the

state. University does not include a community college or a state

agency.

(u) "Utility system" means a utility supply or distribution

system, or a combination utility supply and distribution system.

Sec. 206. (1) Funds appropriated in part 1 for state facility

preservation projects shall include the state capitol building

repairs as the number 1 priority.

(2) State facility preservation projects shall include the

following projects:

Department of Community Health

Mt. Pleasant center

Hawthorn center

Kalamazoo Psychiatric hospital

Department of Corrections

Huron Valley Women's

Multiple facilities – HVAC controls

Multiple facilities – roof repairs

Parnall correctional facility

Department of Management and Budget

All agencies – energy savings plan/energy conservation

measures

All agencies – conversion of chiller building to central

operations control facility

All complexes – security upgrades

Allegan plaza and parking ramp

Capitol complex

Lewis Cass building

Energy center

Flint State office building

General office building

General services building

Grand Rapids State office building

Grand Tower

Joint Lab

Lottery building

Mason building

Michigan Department of Transportation and technology building

Michigan Department of Transportation photo lab

Michigan Department of Transportation warehouse

Michigan library and historical museum

Department of State Police – 1^st district headquarters

Department of State Police – training academy

North complex boiler

Ottawa building

Saginaw state office building

Secondary complex

Secretary of State office building

Treasury building

VanWagoner building

Vehicle and travel services building

Williams building

Department of Education

Michigan schools for the deaf and blind

Department of Human Services (FIA)

Adrian training school

Shawono center

Nokomis center

Maxey training school

Department of Labor and Economic Growth

Michigan career and technical institute

Legislature

Capitol building - roof repairs, security cameras, lighting

control, dome restoration, and other maintenance projects

Department of Military and Veterans Affairs

Grand Rapids home for veterans

D.J. Jacobetti home for veterans

Department of State Police

Southeast criminal investigation division – Livonia

Gaylord post

South Haven post

Manistique post

Newberry post

Bad Axe post

West Branch post

L'Anse post

Traverse City post

Wakefield post

East Tawas post

Sandusky post

Bay City post

Cheboygan post

Adrian post

White Pigeon post

Manistee post

Iron Mountain post

Gladstone post

Petoskey post

Fifth District Headquarters – Paw Paw

Ypsilanti post

Houghton Lake post

Reed City post

Grand Rapids forensic laboratory

(3) Each calendar quarter, the department shall submit to the

members of JCOS a report detailing the contracts awarded in the

previous quarter and any anticipated contracts to be awarded in the

immediately succeeding quarter for the projects described in

subsection (2).

STATE BUILDING AUTHORITY

Sec. 301. (1) Subject to section 242 of the management and

budget act, 1984 PA 431, MCL 18.1242, and upon the approval of the

state building authority, the department may expend from the

general fund of the state during the fiscal year ending September

30, 2005 an amount to meet the cash flow requirements of those

state building authority projects solely for lease to a state

agency identified in both part 1 and this section, and for which

state building authority bonds or notes have not been issued, and

for the sole acquisition by the state building authority of

equipment and furnishings for lease to a state agency as permitted

by 1964 PA 183, MCL 830.411 to 830.425, for which the issuance of

bonds or notes is authorized by a legislative concurrent resolution

that is effective for a fiscal year ending September 30, 2005. Any

general fund advances for which state building authority bonds have

not been issued shall bear an interest cost to the state building

authority at a rate not to exceed that earned by the state

treasurer's common cash fund during the period in which the

advances are outstanding and are repaid to the general fund of the

state.

(2) Upon sale of bonds or notes for the projects identified in

part 1 or for equipment as authorized by legislative concurrent

resolution and in this section, the state building authority shall

credit the general fund of this state an amount equal to that

expended from the general fund plus interest, if any, as defined in

this section.

(3) For state building authority projects for which bonds or

notes have been issued and upon the request of the state building

authority, the state treasurer shall make advances without interest

from the general fund as necessary to meet cash flow requirements

for the projects, which advances shall be reimbursed by the state

building authority when the investments earmarked for the financing

of the projects mature.

(4) In the event that a project identified in part 1 is

terminated after final design is complete, advances made on behalf

of the state building authority for the costs of final design shall

be repaid to the general fund in a manner recommended by the

director and approved by JCOS.

Sec. 302. (1) State building authority funding to finance

construction or renovation of a facility that collects revenue in

excess of money required for the operation of that facility shall

not be released to a university or community college unless the

institution agrees to reimburse that excess revenue to the state

building authority. The excess revenue shall be credited to the

general fund to offset rent obligations associated with the

retirement of bonds issued for that facility. The auditor general

shall annually identify and present an audit of those facilities

that are subject to this section. Costs associated with the

administration of the audit shall be charged against money

recovered pursuant to this section.

(2) As used in this section, "revenue" includes state

appropriations, facility opening money, other state aid, indirect

cost reimbursement, and other revenue generated by the activities

of the facility.

Sec. 303. (1) The state building authority rent appropriations

in part 1 may also be expended for the payment of required premiums

for insurance on facilities owned by the state building authority

or payment of costs that may be incurred as the result of any

deductible provisions in such insurance policies.

(2) If the amount appropriated in part 1 for state building

authority rent is not sufficient to pay the rent obligations and

insurance premiums and deductibles identified in subsection (1) for

state building authority projects, there is appropriated from the

general fund of this state the amount necessary to pay such

obligations.

Sec. 304. The department shall provide JCOS and the fiscal

agencies a report, not more than 15 days after the reporting date,

relative to the status of construction projects associated with

state building authority bonds on March 31 and September 30 of each

year, or not more than 30 days after a refinancing or restructuring

bond issue is sold. The report shall include, but is not limited

to, the following:

(a) A list of all completed construction projects for which

state building authority bonds have been sold, and which bonds are

currently active.

(b) A list of all projects under construction for which sale

of state building authority bonds are pending.

identified in an appropriations act for which approval of

schematic/preliminary plans or total authorized cost is pending

that have state building authority bonds identified as a source of

financing.

CAPITAL OUTLAY PROCESSES, PROCEDURES, AND REPORTS

Sec. 401. Each capital outlay project authorized in this act

or any previous capital outlay act shall comply with the procedures

required by the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

Sec. 402. A statement of a proposed facility's operating cost

shall be included with the facility's program statement and

planning documents when the plans are presented to JCOS for

approval.

Sec. 403. (1) Before proceeding with final planning and

construction for projects at community colleges and universities

included in an appropriations bill, the community college or

university shall sign an agreement with the department that

includes the following provisions:

(a) The university or community college agrees to construct

the project within the total authorized cost established by the

legislature pursuant to the management and budget act, 1984 PA 431,

MCL 18.1101 to 18.1594, and an appropriations act.

(b) The design and program scope of the project shall not

deviate from the design and program scope represented in the

program statement and preliminary planning documents approved by

the department.

necessary to complete the project.

(2) The department retains the authority and responsibility

normally associated with the prudent maintenance of the public's

financial and policy interests relative to the state-financed

construction projects managed by a community college or university.

Sec. 406. A state agency, college, or university shall take

steps necessary to make available federal and other money indicated

in this act, to make available federal or other money that may

become available for the purposes for which appropriations are made

in this act, and to use any part or all of the appropriations to

meet matching requirements that are considered to be in the best

interest of this state. However, the purpose, scope, and total

estimated cost of a project shall not be altered to meet the

matching requirements.

COLLEGES AND UNIVERSITIES

Sec. 801. (1) This section applies only to projects for

community colleges.

(2) State support is directed towards the remodeling and

additions, special maintenance, or construction of certain

community college buildings. The community college shall obtain or

provide for site acquisition and initial main utility installation

to operate the facility. Funding shall be comprised of local and

state shares, and the state share shall include 50% of any federal

money awarded for projects appropriated in this act. Not more than

50% of a capital outlay project, not including a lump-sum special

maintenance project or remodeling and addition project, for a

community college shall be appropriated from state and federal

funds, unless otherwise appropriated by the legislature.

(3) An expenditure under this act is authorized when the

release of the appropriation is approved by the board upon the

recommendation of the director. The director may recommend to the

board the release of any appropriation in part 1 only after the

director is assured that the legal entity operating the community

college to which the appropriation is made has complied with this

act and has matched the amounts appropriated as required by this

act. A release of funds in part 1 shall not exceed 50% of the total

cost of planning and construction of any project, not including

lump-sum remodeling and additions and special maintenance, unless

otherwise appropriated by the legislature. Further planning and

construction of a project authorized by this act or applicable

sections of the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594, shall be in accordance with the purpose and scope as

defined and delineated in the approved program statements and

planning documents. This act is applicable to all projects for

which planning appropriations were made in previous acts.

(4) The community college shall take the steps necessary to

secure available federal construction and equipment money for

projects funded for construction in this act if an application was

not previously made. If there is a reasonable expectation that a

prior year unfunded application may receive federal money in a

subsequent year, the college shall take whatever action necessary

to keep the application active. If federal money is received, the

state share shall be adjusted accordingly as provided by this act.

Sec. 802. If matching revenues are received in an amount less

than the appropriations contained in this act, the state funds of

the appropriation shall be reduced in proportion to the amount of

matching revenue received.

Sec. 804. (1) The director may require that community colleges

and universities that have an authorized project listed in part 1

submit documentation regarding the project match and governing

board approval of the authorized project not more than 60 days

after the beginning of the fiscal year.

(2) If the documentation required by the director under

subsection (1) is not submitted, or does not adequately

authenticate the availability of the project match or board

approval of the authorized project, the authorization may

terminate. The authorization terminates 30 days after the director

notifies the JCOS of the intent to terminate the project unless the

JCOS convenes to extend the authorization.