HB-5541, As Passed Senate, June 13, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 5541

A bill to provide for a capital outlay program; to set forth

the provisions for its implementation within the budgetary process;

to make appropriations for planning and construction at state

institutions and the acquisition of land; to provide for the

elimination of fire hazards at the institutions; to provide for

certain special maintenance, remodeling, alteration, renovation, or

demolition of and additions to projects at state institutions; to

provide for elimination of occupational safety and health hazards

at state agencies and institutions; to provide for the award of

contracts; and to provide for the expenditure thereof under the

supervision of the director of the department of technology,

management, and budget and the state administrative board.

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 and institutions for

the fiscal year ending September 30, 2012, from the funds indicated

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

this part:

CAPITAL OUTLAY

APPROPRIATION SUMMARY

GROSS APPROPRIATION.................................... $ 1,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

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

ADJUSTED GROSS APPROPRIATION........................... $ 1,800

Federal revenues:

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

Special revenue funds:

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

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

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

State general fund/general purpose..................... $ 1,800

Sec. 102. STATE BUILDING AUTHORITY FINANCED

CONSTRUCTION AUTHORIZATIONS

Central Michigan University - bio-science building

(total authorized cost $89,420,000; state building

authority share $29,999,800; Central Michigan

University share $59,420,000; state general fund

share $200).......................................... $ 100

Grand Valley State University - science laboratory,

classroom, and office building (total authorized

cost $55,000,000; state building authority share

$29,999,800; Grand Valley State University share

$25,000,000; state general fund share $200).......... 100

Michigan State University - bio-engineering facility

(total authorized cost $40,340,200; state building

authority share $29,999,800; Michigan State

University share $10,340,200; state general fund

share $200).......................................... 100

Northern Michigan University - Jamrich hall

replacement (total authorized cost $33,400,000;

state building authority share $25,049,800; Northern

Michigan University share $8,350,000; state general

fund share $200)..................................... 100

Oakland University - engineering center (total

authorized cost $74,551,700; state building

authority share $29,999,800; Oakland University

share $44,551,700; state general fund share $200).... 100

University of Michigan - Ann Arbor - G.G. Brown

memorial laboratories renovation (total authorized

cost $47,000,000; state building authority share

$29,999,800; University of Michigan - Ann Arbor

share $17,000,000; state general fund share $200).... 100

University of Michigan - Dearborn - science and

computer information science building renovations

(total authorized cost $51,000,000; state building

authority share $29,999,800; University of Michigan

- Dearborn share $21,000,000; state general fund

share $200).......................................... 100

University of Michigan - Flint - Murchie science

laboratory building renovations (total authorized

cost $22,170,000; state building authority share

$16,627,300; University of Michigan - Flint share

$5,542,500; state general fund share $200)........... 100

Wayne State University - multidisciplinary bio-medical

research building (total authorized cost

$90,414,700; state building authority share

$29,999,800; Wayne State University share

$60,414,700; state general fund share $200).......... 100

Alpena Community College - electrical power technology

education and training center addition (total

authorized cost $4,989,600; state building authority

share $2,494,600; Alpena Community College share

$2,494,800; state general fund share $200)........... 100

Bay de Noc Community College - nursing laboratory and

lecture hall remodeling (total authorized cost

$1,500,000; state building authority share $749,800;

Bay de Noc Community College share $750,000; state

general fund share $200)............................. 100

Delta College - health and wellness F-wing renovations

(total authorized cost $19,984,000; state building

authority share $9,991,800; Delta College share

$9,992,000; state general fund share $200)........... 100

Gogebic Community College - building renovations

(total authorized cost $1,500,000; state building

authority share $749,800; Gogebic Community College

share $750,000; state general fund share $200)....... 100

Grand Rapids Community College - Cook academic hall

renovations (total authorized cost $14,255,400;

state building authority share $4,999,800; Grand

Rapids Community College share $9,255,400; state

general fund share $200)............................. 100

Jackson Community College - Bert Walker hall

renovations (total authorized cost $19,500,000;

state building authority share $9,749,800; Jackson

Community College share $9,750,000; state general

fund share $200)..................................... 100

Lansing Community College - arts and sciences building

renovations (total authorized cost $19,950,000;

state building authority share $9,974,800; Lansing

Community College share $9,975,000; state general

fund share $200)..................................... 100

Mid-Michigan Community College - Mt. Pleasant campus

unification (total authorized cost $17,704,600;

state building authority share $8,852,100; Mid-

Michigan Community College share $8,852,300; state

general fund share $200)............................. 100

North Central Michigan College - health education and

science center project (total authorized cost

$10,428,400; state building authority share

$5,214,000; North Central Michigan College share

$5,214,200; state general fund share $200)........... 100

GROSS APPROPRIATION.................................... $ 1,800

Appropriated from:

State general fund/general purpose..................... $ 1,800

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. 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 2011-2012 is $1,800.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2011-2012 is $900.00.

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) "Board" means the state administrative board.

(b) "Community college" means a postsecondary educational

institution supported by this state but does not include a state

agency or university.

management, and budget.

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

technology, management, and budget.

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

house fiscal agency.

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

appropriations committees.

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

agency does not include a community college or university.

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

under 1964 PA 183, MCL 830.411 to 830.425.

(i) "University" means a 4-year university supported by this

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

agency.

Sec. 204. Funds appropriated in part 1 shall not be used for

the purchase of foreign goods or services, or both, if

competitively priced and of comparable quality American goods or

services, or both, are available. Preference shall be given to

goods or services, or both, manufactured or provided by Michigan

businesses, if they are competitively priced and of comparable

quality. In addition, preference should be given to goods or

services, or both, that are manufactured or provided by Michigan

businesses owned and operated by veterans, if they are

competitively priced and of comparable quality.

Sec. 205. Unless otherwise specified, institutions receiving

appropriations in part 1 shall use the Internet to fulfill the

reporting requirements of this act. This requirement may include

transmission of reports via electronic mail to the recipients

identified for each reporting requirement, or it may include

placement of reports on an Internet or Intranet site.

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 act, 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. 404. (1) The department shall provide the JCOS, the state

budget director, and the fiscal agencies with reports as considered

necessary relative to the status of each planning or construction

project financed by the state building authority, by this act, or

by previous acts.

(2) Before the end of each fiscal year, the department shall

report to the JCOS, the state budget director, and the fiscal

agencies for each capital outlay project other than lump sums all

of the following:

(a) The account number and name of the construction project.

(b) The balance remaining in the account.

(d) The anticipated date of occupancy if the project is under

construction.

(e) The appropriations history for the project.

(f) The professional service contractor.

(g) The amount of a project financed with federal funds.

(h) The amount of a project financed through the state

building authority.

(i) The total authorized cost for the project and the state

authorized share if different than the total.

(3) Before the end of each fiscal year, the department shall

report the following for each project by a state agency,

university, or community college that is authorized for planning

but is not yet authorized for construction:

(a) The name and account number of the project.

(b) Whether a program statement is approved.

(d) Whether preliminary plans are approved by the department.

(e) The name of the professional service contractor.

(4) As used in this section, "project" includes appropriation

line items made for purchase of real estate.

Sec. 405. A state agency, community 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. Any federal matching

revenues received to support the construction of the project shall

be applied to the total authorized project cost, with state,

community college, and university financing shares proportionately

adjusted.

Sec. 406. Pursuant to section 242(2) of the management and

budget act, 1984 PA 431, MCL 18.1242, the department shall submit

5-year capital outlay plans and capital outlay priority requests

developed by state agencies (and as approved by the department of

technology, management, and budget), universities, and community

colleges to the chairperson and ranking vice-chairperson of JCOS

and the fiscal agencies upon the release of the executive budget

recommendation.

COLLEGES AND UNIVERSITIES

Sec. 601. (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. 602. 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. 603. (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.