March 26, 2008, Introduced by Senators BROWN, JELINEK, PAPPAGEORGE, STAMAS, GARCIA, BIRKHOLZ, CASSIS, RICHARDVILLE, GILBERT, SANBORN and GEORGE and referred to the Committee on Appropriations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending section 221 (MCL 18.1221), as amended by 1999 PA 8.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 221. (1) The director may provide for the rental and
lease of land and facilities for the use of state agencies in the
manner provided by law. The rentals and leases shall not be
effective unless approved by the board.
(2) If a project costs more than $1,000,000.00 and consists of
less than 25,000 gross square feet, the department shall notify the
joint capital outlay subcommittee in writing of its intent to
proceed with such a facility. The notice shall be given 30 days
before the lease contract providing for the proposed constructions
is entered into.
(3) If the director proposes to lease or rent space or a
facility
which meets either 1 or
more of the following criteria,
approval of the joint capital outlay subcommittee is required prior
to board approval:
(a) The space or facility exceeds 25,000 gross square feet.
(b) The annual base cost of the proposed lease or rental
agreement is more than $500,000.00.
(c) Two or more lease or rental agreements at the same
facility that, in the aggregate, exceed the square foot limit in
subdivision (a) or the annual base cost limit in subdivision (b).
(4) For the purposes of this section, the renewal of an
existing lease or rental agreement will require the approval of the
joint capital outlay subcommittee if the renewal results in changes
to the lease or rental agreement that would cause it to meet the
requirements outlined in subsection (3).
(5) The department may grant easements, upon terms and
conditions the board determines are just and reasonable, for
highway and road purposes, and for constructing, operating, and
maintaining pipelines or electric, telephone, telegraph,
television, gas, sanitary sewer, storm sewer, or other utility
lines including all supporting fixtures and other appurtenances
over, through, under, upon, and across any land belonging to this
state, except lands under the jurisdiction of the department of
natural resources, the department of military affairs, or the state
transportation department.
(6) The department shall determine annually the prevailing
market rental values of all state owned office facilities and
private facilities which provide housing for state employees. The
rental values determined pursuant to this subsection shall not be
effective unless approved by the board. The renting, leasing, or
licensing of state owned land and facilities to private and public
entities shall be at prevailing market rental values or at actual
costs as determined by the director.
(7) The department shall charge state agencies for building
occupancy in state owned facilities under the jurisdiction of the
department. The rates to be charged for building occupancy shall be
coordinated with the budget cycle. The rates shall reflect the
actual cost for occupancy of the facilities.
(8) Beginning July 1, 2008, if the director proposes to lease
or rent space in which the base cost is more than $1,000,000.00 or
to exercise an option to purchase a facility, then the director
shall submit the question of approval of the lease, rental, or
exercise of the option to purchase to the legislature. The director
shall proceed with the lease, rental, or option to purchase only if
the legislature approves by a concurrent resolution adopted by a
majority vote of those elected to and serving in each house of the
legislature on a record roll call vote.