HOUSE BILL No. 5306

 

September 2, 2009, Introduced by Reps. Kowall, Walsh, Haines, Rick Jones, Elsenheimer, Agema, Green, Marleau, Rogers, Rocca, Tyler, Lori, Ball, Paul Scott, Wayne Schmidt, Calley, McMillin, Daley, Pavlov, Crawford, Liss, Knollenberg, Meekhof, Moss, Genetski, Scripps, Lund, Bolger, Moore, Horn and Sheltrown and referred to the Committee on Government Operations.

 

     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 the 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 that meets either 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 is more than

 

$500,000.00.

 

     (4) For the purposes of this section, the renewal of an

 

existing lease will require the approval of the joint capital

 

outlay subcommittee if the renewal results in changes to the lease

 

that would cause it to meet the requirements outlined in subsection

 

(3).

 

     (5) Beginning October 1, 2009, the department shall

 

competitively solicit the rental, lease, or lease purchase of land

 

or facilities for a state agency if either of the following

 

applies:

 

     (a) The rental or lease meets the cost or gross square feet

 

requirements contained in subsection (2) or (3).

 

     (b) The lease purchase otherwise meets the cost or gross

 

square feet requirements contained in subsection (2) or (3).

 

     (6) (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.

 

     (7) (6) The department shall determine annually the prevailing

 

market rental values of all state owned office facilities and

 

private facilities which that provide housing for state employees.

 

The rental values determined pursuant to under this subsection

 

shall are 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.

 

     (8) (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.