Bill Text: MI SB0877 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: State; buildings; legislative oversight for certain leases and options to purchase; revise. Amends sec. 221 of 1984 PA 431 (MCL 18.1221).

Spectrum: Partisan Bill (Republican 8-0)

Status: (Introduced - Dead) 2009-09-25 - Referred To Committee On Appropriations [SB0877 Detail]

Download: Michigan-2009-SB0877-Introduced.html

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SENATE BILL No. 877

 

 

September 25, 2009, Introduced by Senators BROWN, PAPPAGEORGE, GEORGE, KAHN, RICHARDVILLE, PATTERSON, STAMAS and CASSIS 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 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 agreement is

 

more than $500,000.00.

 

     (c) Two or more lease agreements at the same facility, 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 agreement will require the approval of the joint

 

capital outlay subcommittee if the renewal results in changes to

 

the lease 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, 2010, if the director proposes to lease

 

space in which the base cost is more than $1,000,000.00 or to

 

exercise an option to purchase a facility, the director shall

 

submit the question of approval of the lease or exercise of the

 

option to purchase to the legislature. The director shall proceed

 

with the lease 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.

 

     (9) Before implementing any lease cancellation, the department

 

shall submit to the house and senate appropriations subcommittees

 

with jurisdiction over the department's budget a report on the

 

total costs of both the office location for which a lease is being

 

canceled and any office location or locations to which affected

 

staff will be relocated following the lease cancellation.