STATE BUILDING AUTHORITY: HIGHER ED INSTITUTIONS

House Bill 6164

Sponsor: Rep. Marc Shulman

Committee: Energy and Technology

Complete to 7-26-02

A SUMMARY OF HOUSE BILL 6164 AS INTRODUCED 6-4-02

House Bill 6164 would amend Public Act 183 of 1964 to allow the state's universities, colleges, and community and junior colleges to seek approval of a lease for furnishings, hardware, and equipment associated with telecommunications services from the Michigan State Building Authority according to procedures currently restricted to the state's legislative, executive, and judicial branches. Public Act 183 created the Michigan State Building Authority, which may issue revenue bonds to finance the construction of "facilities" that the state, including any of the three branches of state government and the state's institutions of higher education, may in turn lease. "Facilities" includes furnishings and equipment, but also refers to buildings, sites, and parking structures and lots. Before executing such a lease, a lease for facilities must generally be approved by the State Administrative Board and by concurrent resolution of the legislature. The act currently allows the state's legislative, executive, and judicial branches-but not the institutions of higher education-to lease furnishings and equipment from the authority without submitting the lease to the legislature for approval, as long as the lease does not involve other types of facilities. In this case, the board must approve a description of the furnishings and equipment as well as the rental amount, and each house of the legislature must approve (by concurrent resolution) the general form of the lease and state a maximum amount of property that may be leased during the following two years. The form of the lease need not contain a property description or a specific rental amount or range.

The bill would allow universities, colleges, and community and junior colleges to lease from the board furnishings, hardware, and equipment associated with telecommunications, including digital broadcasting, wireless networking, and Internet services, without seeking the legislature's approval of the specific terms of the lease. The legislature would have to approve the general form of the lease as well as a maximum amount of furnishings and equipment that could be leased for the two years following approval. Both the board and the institution of higher education would have to approve the property description and the rental before the lease could be executed.

MCL 830.417

Analyst: J. Caver

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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.