HOUSE BILL No. 5484 January 21, 1998, Introduced by Reps. Cropsey, Gilmer, Richner, Fitzgerald and DeVuyst and referred to the Committee on Appropriations. A bill to amend 1996 PA 522, entitled "The Michigan biologic products institute transfer act," by amending the title and section 3 (MCL 333.26333) and by adding sections 3a, 3b, and 6a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An act TO ESTABLISH THE MICHIGAN BIOLOGIC PRODUCTS INSTITUTE 3 AS AN INDEPENDENT, AUTONOMOUS STATE AGENCY WITHIN THE DEPARTMENT 4 OF COMMUNITY HEALTH; to authorize the conveyance of the assets 5 and liabilities of the state related to the operation of the 6 Michigan biologic products institute; to authorize the state 7 administrative board to approve the conveyance and to make deter- 8 minations that certain conditions upon the conveyance have been 9 met; to permit the acceptance of consideration in exchange for 10 the conveyance; to make certain findings and determinations of 05395'98 CPD 2 1 the interest of the state relative to the conveyance; to 2 authorize the state administrative board to approve certain 3 agreements for continued services and products by certain state 4 agencies to transferred facilities or to the state from the 5 transferred facilities; TO ESTABLISH THE MICHIGAN BIOLOGIC PRO- 6 DUCTS COMMISSION AS A TEMPORARY STATE COMMISSION; to authorize 7 the Michigan biologic products commission to negotiate and, upon 8 concurrence of the state administrative board, approve certain 9 agreements related to the conveyance of the assets and liabili- 10 ties of the state associated with the Michigan biologic products 11 institute, certain agreements for the marketing of the assets and 12 liabilities, certain agreements for continued services and pro- 13 ducts, and certain agreements for the retention of rights, inter- 14 ests, and easements in certain conveyed assets; to authorize 15 employees and employee based entities to bid for or make propos- 16 als to acquire the assets and liabilities of the state associated 17 with the Michigan biologic products institute; to prescribe the 18 powers and duties of certain public officers and certain state 19 agencies and departments; to grant exclusive jurisdiction over 20 claims related to the conveyance to the court of claims and to 21 limit the time in which claims related to the conveyance or to 22 the products produced by the Michigan biologic products institute 23 may be brought; to provide for the disposition of the revenue 24 derived from the conveyance;andto make an appropriation; AND 25 TO MAKE A SUPPLEMENTAL APPROPRIATION. 26 Sec. 3. As used in this act: 05395'98 3 1 (a) "Assets" means all or part of the following that are 2 associated with the institute and are subject to conveyance under 3 this act: 4 (i) Real property, including all rights to coal, oil, gas, 5 and other materials, and all rights to sand, gravel, clay, and 6 other nonmetallic minerals, found on, within, or under real prop- 7 erty conveyed under this act, except that the agreement for the 8 conveyance of the assets and liabilities of the institute entered 9 into under this act shall specify that the state shall receive 10 not less than 1/2 of the net royalties from the development, if 11 any, of coal, oil, gas, or other minerals on or under the real 12 estate. 13 (ii) Personal property. 14 (iii) Intangible property. 15 (iv) Product inventory, including, but not limited to, manu- 16 factured products that have been released by the federal food and 17 drug administration for public sale and use, manufactured pro- 18 ducts that have not been released by the federal food and drug 19 administration for public sale and use, and products that are in 20 the process of being manufactured and components of those 21 products. 22 (b) "Chair" means the chair of the commission. 23 (c) "Commission" means the Michigan biologic products com- 24 mission established by Executive Order 1995-25, pursuant to sec- 25 tion 4 of article V of the state constitution of 1963, AND BY 26 SECTION 3B. 05395'98 4 1 (d) "Conveyance" means sale, transfer, assignment, or other 2 disposition. 3 (e) "Institute" means the Michigan biologic products insti- 4 tute established by Executive Order 1995-25, pursuant to section 5 4 of article V of the state constitution of 1963, AND BY SECTION 6 3A. 7 (f) "Local health department" means that term as defined in 8 section 1105 of the public health code,being section 333.11059of the Michigan Compiled LawsMCL 333.1105. 10 (g) "Pharmaceutical products fund" means the pharmaceutical 11 products fund established under section 9112 of the public health 12 code,being section 333.9112 of the Michigan Compiled LawsMCL 13 333.9112. 14 (h) "Public health code" meansAct No. 368 of the Public15Acts of 1978, being sections 333.1101 to 333.25211 of the16Michigan Compiled Laws1978 PA 368, MCL 333.1101 TO 333.25211. 17 (i) "Real property" means all or a portion of the real prop- 18 erty associated with the institute, more particularly described 19 as follows: 20 (i) A parcel of land in the NE 1/4 of section 5, T4N, R2W, 21 Ingham County, Michigan and more particularly described as com- 22 mencing at the northeast corner of said section 5; thence 23 N89ø59'49"W 124.94 feet, on the north line of said section 5; 24 thence S00ø00'11"W 33.00 feet, to the point of beginning of this 25 description; thence S33ø12'59"W 315.33 feet; thence N53ø08'14"W 26 101.37 feet; thence S89ø11'38"W 47.55 feet; thence S00ø42'03"W 27 63.21 feet; thence S89ø45'02"W 73.97 feet; thence S00ø59'58"W 05395'98 5 1 106.92 feet; thence 132.16 feet, on the arc of a curve to the 2 right with a central angle of 33ø53'13", a radius of 223.46 feet, 3 and a long chord bearing and distance of S22ø22'16"W 130.25 feet; 4 thence S59ø26'51"W 14.65 feet; thence S77ø08'54"W 92.93 feet; 5 thence S88ø34'58"W 131.49 feet; thence S01ø57'43"E 41.46 feet; 6 thence S88ø02'17"W 153.47 feet; thence S01ø57'43"E 132.00 feet; 7 thence S88ø02'17"W 351.61 feet; to the easterly right of way line 8 of Logan Street; thence N00ø28'13"E 716.63 feet, to the southerly 9 right of way line of Sheridan Road; thence S89ø59'49"E 1155.21 10 feet, on said right of way to the point of beginning, containing 11 12.56 acres, more or less. 12 (ii) A parcel of land in the SE 1/4 of Section 32, T5N, R2W, 13 Clinton County, Michigan and more particularly described as 14 beginning at the S 1/4 corner of said section 32; thence 15 N00ø12'30"W 2152.16 feet on the N-S 1/4 line of said section 32; 16 thence S89ø57'16"E 683.94 feet to the westerly Right-of-Way of 17 DeWitt Road at a point 500.00 feet southerly of the E-W 1/4 line 18 of said section 32; thence on the westerly Right-of-Way of DeWitt 19 Road for the next five calls; thence S04ø03'50"E 112.68 feet; 20 thence 299.44 feet on the arc of a curve to the left with a cen- 21 tral angle of 23ø26'19", a radius of 731.99 feet and long chord 22 bearing and distance of S15ø47'00"E 297.36 feet; thence 23 S27ø30'10"E 927.69 feet; thence 356.62 feet on the arc of a curve 24 to the right with a central angle of 27ø41'37", a radius of 25 737.82 feet and a long chord bearing and distance of S13ø39'21"E 26 353.16 feet; thence S00ø11'27"W 30.40 feet; thence S88ø07'13"W 27 171.96 feet; thence S17ø13'15"W 128.78 feet; thence S02ø36'04"W 05395'98 6 1 161.34 feet; thence N89ø52'39"W 420.93 feet; thence S00ø06'07"E 2 267.69 feet to the south line of said section 32, thence 3 N89ø59'49"W 632.45 feet on the south line of said section 32 to 4 the N 1/4 corner of section 5, T4N, R2W; thence S89ø27'29"W 6.45 5 feet on the south line of said section 32 to the point of begin- 6 ning, containing 46.94 acres, more or less. 7 (j) "State administrative board" means the state administra- 8 tive board created underAct No. 2 of the Public Acts of 1921,9being sections 17.1 to 17.11 of the Michigan Compiled Laws1921 10 PA 2, MCL 17.1 TO 17.11. 11 SEC. 3A. (1) EFFECTIVE FEBRUARY 17, 1998, THE MICHIGAN BIO- 12 LOGIC PRODUCTS INSTITUTE, ESTABLISHED BY EXECUTIVE ORDER 1995-25, 13 IS TRANSFERRED TO THE MICHIGAN DEPARTMENT OF COMMUNITY HEALTH AS 14 A TYPE I TRANSFER. AS USED IN THIS SUBSECTION, "TYPE I TRANSFER" 15 MEANS THAT TERM AS DEFINED IN SECTION 3 OF THE EXECUTIVE ORGANI- 16 ZATION ACT OF 1965, 1965 PA 380, MCL 16.103. 17 (2) THE INSTITUTE IS AN INDEPENDENT AND AUTONOMOUS ENTITY. 18 THE INSTITUTE AND THE DIRECTOR OF THE INSTITUTE SHALL EXERCISE 19 THE POWERS AND PERFORM THE DUTIES PRESCRIBED BY THIS ACT INDEPEN- 20 DENTLY OF THE PRINCIPAL EXECUTIVE DEPARTMENTS OF THIS STATE, 21 INCLUDING, BUT NOT LIMITED TO, PERSONNEL, BUDGETING, PROCUREMENT, 22 AND MANAGEMENT-RELATED FUNCTIONS. 23 (3) THE GOVERNOR SHALL APPOINT A DIRECTOR FOR THE INSTITUTE, 24 WHO SHALL BE THE HEAD OF THE INSTITUTE, WITHIN THE MEANING OF THE 25 EXECUTIVE REORGANIZATION ACT OF 1965, 1965 PA 380, MCL 16.101 TO 26 16.608. THE DIRECTOR IS ALSO THE APPOINTING AUTHORITY FOR 05395'98 7 1 PURPOSES OF SECTION 5 OF ARTICLE XI OF THE STATE CONSTITUTION OF 2 1963. 3 (4) THE INSTITUTE HAS THE POWERS, DUTIES, AND RESPONSIBILI- 4 TIES PRESCRIBED IN EXECUTIVE ORDER 1995-25, AND SHALL OPERATE 5 PURSUANT TO AND IN ACCORDANCE WITH EXECUTIVE ORDER 1995-25. 6 SEC. 3B. (1) EFFECTIVE FEBRUARY 17, 1998, THE MICHIGAN BIO- 7 LOGIC PRODUCTS COMMISSION, ESTABLISHED BY EXECUTIVE ORDER 8 1995-25, IS TRANSFERRED TO THE MICHIGAN DEPARTMENT OF COMMUNITY 9 HEALTH AS A TYPE I TRANSFER. AS USED IN THIS SUBSECTION, "TYPE I 10 TRANSFER" MEANS THAT TERM AS DEFINED IN SECTION 3 OF THE EXECU- 11 TIVE ORGANIZATION ACT OF 1965, 1965 PA 380, MCL 16.103. 12 (2) THE COMMISSION CONSISTS OF 3 VOTING MEMBERS APPOINTED BY 13 THE GOVERNOR WHO ARE NOT EMPLOYEES OF THE INSTITUTE AND WHO SHALL 14 SERVE AT THE PLEASURE OF THE GOVERNOR. THE GOVERNOR SHALL DESIG- 15 NATE 1 OF THE APPOINTED MEMBERS TO SERVE AS CHAIR OF THE 16 COMMISSION. THE CHAIR OF THE COMMISSION ALSO SERVES IN THAT 17 CAPACITY AT THE PLEASURE OF THE GOVERNOR. 18 (3) THE COMMISSION HAS THE POWERS, DUTIES, AND RESPONSIBILI- 19 TIES PRESCRIBED IN EXECUTIVE ORDER 1995-25, AND SHALL OPERATE 20 PURSUANT TO AND IN ACCORDANCE WITH EXECUTIVE ORDER 1995-25. 21 (4) THE MEMBERS OF THE COMMISSION SHALL SERVE WITHOUT COM- 22 PENSATION, BUT SHALL BE REIMBURSED FOR NECESSARY TRAVEL AND OTHER 23 EXPENSES PURSUANT TO THE STANDARD TRAVEL REGULATIONS OF THE 24 DEPARTMENT OF MANAGEMENT AND BUDGET. 25 (5) THE COMMISSION MAY PROMULGATE BYLAWS GOVERNING THE 26 ORGANIZATION AND PROCEDURES OF THE COMMISSION. A MAJORITY OF THE 27 MEMBERS SERVING CONSTITUTE A QUORUM FOR THE TRANSACTION OF 05395'98 8 1 BUSINESS, NOTWITHSTANDING THE EXISTENCE OF 1 OR MORE VACANCIES ON 2 THE COMMISSION. THE COMMISSION SHALL APPROVE A FINAL ACTION OF 3 THE COMMISSION BY A MAJORITY VOTE OF THE MEMBERS. A MEMBER OF 4 THE COMMISSION MUST BE PRESENT AT A MEETING OF THE COMMISSION IN 5 ORDER TO VOTE, EITHER IN PERSON OR BY AMPLIFIED TELEPHONE 6 EQUIPMENT. 7 (6) THE COMMISSION SHALL MEET AT THE CALL OF THE CHAIR AND 8 AS OTHERWISE PROVIDED IN THE COMMISSION'S BYLAWS. THE COMMISSION 9 MAY MEET AT ANY LOCATION WITHIN THE STATE. A MEETING OF THE COM- 10 MISSION IS SUBJECT TO THE OPEN MEETINGS ACT, 1976 PA 267, MCL 11 15.261 TO 15.275. THE COMMISSION MAY MAKE INQUIRIES, CONDUCT 12 STUDIES AND INVESTIGATIONS, HOLD HEARINGS, AND RECEIVE COMMENTS 13 FROM THE PUBLIC. 14 SEC. 6A. THERE IS APPROPRIATED FOR THE REMAINDER OF FISCAL 15 YEAR 1997-98, $9,000,000.00 FROM BIOLOGIC PRODUCT SALES AND OTHER 16 NON-GENERAL-FUND REVENUES. 05395'98 Final page. CPD