HB-5831, As Passed House, December 4, 2012

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5831

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

by amending sections 115, 221, 237a, 241, 242, 246, 248, 249, and

 

393 (MCL 18.1115, 18.1221, 18.1237a, 18.1241, 18.1242, 18.1246,

 

18.1248, 18.1249, and 18.1393), sections 115, 221, 242, 246, 248,

 

and 393 as amended and section 237a as added by 1999 PA 8 and

 

section 241 as amended by 2010 PA 22, and by adding sections 221a,

 

238, and 242a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 115. (1) "Institution of higher education" or

 

"university" means a state supported 4-year college or university.

 

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

 

appropriations committees.

 


     (3) Except as used in sections 284 to 292, "record" means a

 

public record as defined in section 2 of the freedom of information

 

act, 1976 PA 442, MCL 15.232.

 

     (4) "State agency" means a department, board, commission,

 

office, agency, authority, or other unit of state government. State

 

agency does not include an institution of higher education or a

 

community college or, for purposes of article 2 or 3, the

 

legislative branch of government. For purposes of article 2 or 3,

 

except for those sections pertaining to the authorization,

 

planning, construction, and funding of a capital outlay project,

 

including construction of a facility to house offices or functions

 

necessary for operation of the judicial branch of government, state

 

agency does not include the judicial branch of government.

 

     (5) "Unit of local government" means a political subdivision

 

of this state, including school districts, community college

 

districts, intermediate school districts, cities, villages,

 

townships, counties, and authorities, if the political subdivision

 

has as its primary purpose the providing of local governmental

 

service for citizens in a geographically limited area of the state

 

and has the power to act primarily on behalf of that area.

 

     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.

 

     (2) (3) If the director proposes to lease space or a facility

 

which meets either of the following criteria for which the annual

 

base cost of the proposed lease is more than $500,000.00, 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.

 

     (3) The department shall provide notification to the JCOS and

 

to the fiscal agencies within 5 business days of rental agreements

 

entered into in which the base cost 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).(2).

 

     (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 and veterans 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 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 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.

 

     Sec. 221a. (1) The department shall provide the JCOS and the

 

fiscal agencies with the following reports:

 

     (a) By November 1 of each year, for state-owned space as of

 

September 30 of that year, all of the following:

 

     (i) The department occupying or using the space.

 

     (ii) The building location, including street address, city or

 

township, and county.

 

     (iii) The type of building, such as office, warehouse, garage,

 

storage, or other use.

 

     (iv) The square footage.

 

     (v) The occupancy and usage of space compared to total space

 


available.

 

     (vi) The condition of facility and estimated future special

 

maintenance costs.

 

     (b) By November 1 of each year, for privately owned state-

 

leased space as of September 30 of that year, all of the following:

 

     (i) The department occupying or using the space.

 

     (ii) The lease number.

 

     (iii) The building location, including street address, city or

 

township, and county.

 

     (iv) The type of building, such as office, warehouse, garage,

 

storage, or other use.

 

     (v) The name and address of lessor.

 

     (vi) The square footage and net square footage rate.

 

     (vii) The occupancy and usage of space compared to total space

 

available.

 

     (viii) The monthly and annual cost.

 

     (ix) The date the lease starts and expires.

 

     (x) The options and services.

 

     (xi) The total monthly and annual cost for all leases described

 

in this subdivision.

 

     (c) At least 2 weeks prior to a state lease proposal being

 

included on a JCOS meeting agenda for review and approval, all of

 

the following:

 

     (i) The lease number.

 

     (ii) The department.

 

     (iii) The location.

 

     (iv) The lessor.

 


     (v) The total square footage and use of space.

 

     (vi) Lease costs, to include annual costs of lease, monthly

 

costs of lease, cost per square foot, and increases, if any, from

 

prior lease to new lease.

 

     (vii) The costs to renovate.

 

     (viii) The costs for utilities.

 

     (ix) The management fees.

 

     (x) The amount paid for ad valorem property taxes.

 

     (xi) The operating costs.

 

     (xii) The lease terms.

 

     (xiii) If an option to purchase is included, the terms of the

 

offer to purchase and rationale for not funding construction

 

through the state building authority.

 

     (xiv) The existing space, including years in existing location,

 

cost, terms of the lease, and disadvantages related to continuing

 

in current location.

 

     (xv) The bid process, including an overview including dates,

 

number of proposals submitted, cost range of proposals, comparable

 

market rates, and an explanation if lowest bid was not accepted.

 

     (xvi) A cost comparison listing the total square footage, base

 

cost per square foot, annual lease cost, cost for utilities, taxes,

 

operating costs, and total annual cost for the proposed lease and

 

the current lease, and show the difference in costs.

 

     (d) Not later than 45 days after the close of the fiscal year,

 

the status of all active planning and construction projects

 

approved by JCOS and financed through the state building authority

 

or state general fund/general purpose revenues, including all of

 


the following:

 

     (i) The name of each project.

 

     (ii) The applicable appropriation acts.

 

     (iii) The appropriation year and account numbers.

 

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

 

authorized share.

 

     (v) The unencumbered balance remaining in each account.

 

     (vi) The expiration date of authorization.

 

     (vii) The current project status: planning, preconstruction,

 

construction, or postconstruction.

 

     (viii) The estimated completion date.

 

     (ix) As applicable, the qualifying carryforward exemption under

 

section 248(4) or (6).

 

     (2) This section is in effect until March 31, 2015.

 

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

 

line items made for purchase of real estate.

 

     Sec. 237a. (1) This section pertains to capital outlay

 

projects for community colleges and universities.

 

     (2) The department shall review documents associated with

 

community college and university capital outlay projects for which

 

an appropriation or other authorization has been made.

 

     (3) The department shall provide architectural and

 

professional engineering review of documents including designs,

 

plans, and change orders at each stage of the project to ensure

 

that the project or facility is in compliance with approved

 

program, appropriation, and capital outlay requirements.

 

     (4) The department shall review the award and selection of

 


architects, professional engineers, construction managers, and

 

other design or construction professional service contractors.

 

     (5) The department shall do all of the following:

 

     (a) Review the construction bid.

 

     (b) Review monthly reports to ensure appropriate construction

 

progress, evaluate change orders, and watch for potential problems.

 

     (c) Respond to college and university requests for assistance

 

on the capital outlay process, contractor issues, and other capital

 

outlay related issues.

 

     (d) Provide for field checks and audits throughout the project

 

in order to meet the trustee requirements of the state building

 

authority.

 

     (6) The department may require that community colleges and

 

universities self-managing construction of a capital outlay project

 

enter into an agreement with the department in which the community

 

college or university agrees to construct the project within the

 

total authorized cost, design, and program scope established by the

 

legislature. This agreement shall include, but is not limited to,

 

certification from the community college or university that the

 

operating costs resulting from the capital outlay project are the

 

responsibility of the community college or university. The

 

agreement may include other requirements as identified by the

 

department that are necessary to complete the project and fulfill

 

the project oversight requirements of this act.

 

     (7) The department retains the authority and fiduciary

 

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. The director may take appropriate action to bring the

 

capital outlay project to conclusion if the public's financial and

 

policy interests are in jeopardy and there is a failure on the part

 

of a community college or university to adhere to the requirements

 

of this act. The director shall provide notice to the joint capital

 

outlay subcommittee within 10 days of exercising authority under

 

this subsection.

 

     (8) (6) The department may charge a fee for the services

 

described in this section at a rate not to exceed actual costs.

 

     (9) (7) In the event that a college or university chooses to

 

have the department provide for the complete administration of a

 

capital outlay project, then the provisions of section 237 apply to

 

the project.

 

     (10) (8) Prior to state building authority financing, the

 

department shall provide final review of the capital outlay project

 

to ensure compliance with the authorized program, plans, and

 

specifications.

 

     Sec. 238. (1) Universities and community colleges shall report

 

on all contracts entered into for new construction of self-funded

 

projects costing in excess of $1,000,000.00. New construction

 

includes land or property acquisition, remodeling and additions,

 

maintenance projects, roads, landscaping, equipment,

 

telecommunications, utilities, and parking lots and structures.

 

Reports shall be submitted to the JCOS, the fiscal agencies, and

 

the state budget office on or before June 30 and December 31 of

 

each year. Each report shall include, but not be limited to, the

 


following information on all self-funded capital projects commenced

 

for the immediately preceding 6-month period:

 

     (a) Description of the project, to include purpose, need,

 

justification, and start and completion dates.

 

     (b) Statement of gross estimated capital improvement or

 

project costs including a breakdown of land costs, site development

 

and demolition costs, construction costs, costs of furnishings and

 

equipment, fees, and any other special costs.

 

     (c) Listing of all sources of funding for project costs to

 

include borrowed funds, university or college funds, gifts, grants,

 

federal funds, private funds, state funds, student fees or tuition,

 

any other funds, and any combination of funds.

 

     (d) Statement of the impact of project financing on student

 

tuition.

 

     (2) If changes occur in any information provided in a

 

previously submitted report, those changes shall be included in the

 

next report issued. Failure to comply with this section will result

 

in penalties as provided for in the higher education and community

 

colleges appropriations bills. The university of Michigan hospital

 

and health center is excluded from this reporting requirement.

 

     Sec. 241. (1) Except for the contracts permitted in section

 

240, a contract shall not be awarded for the construction, repair,

 

remodeling, or demolition of a facility unless the contract is let

 

pursuant to a bidding procedure that is approved by the board. The

 

department shall issue directives prescribing procedures to be used

 

to implement this section. The procedures shall require a

 

competitive solicitation in the award of any contract for

 


House Bill No. 5831 (H-1) as amended November 29, 2012

construction, repair, remodeling, or demolition of a facility.

 

     (2) The department may award or approve the award, if the

 

board approves, of construction contracts to construct a project

 

for which the director is the agent and may expend, for the

 

purposes and in the manner set forth, the amounts appropriated. The

 

director is not the agent for a community college or institution of

 

higher education, but may act in that capacity upon the specific

 

request of a community college or institution of higher education.

 

     (3) In awarding a contract under this section, the department

 

shall give a preference of up to 10%[                               ]

 

of the amount of the contract to a qualified disabled veteran, as

 

defined in section 261. If the qualified disabled veteran otherwise

 

meets the requirements of the contract solicitation and with the

 

preference is the lowest bidder, the department shall enter into a

 

construction contract with the qualified disabled veteran under

 

this act. If 2 or more qualified disabled veterans are the lowest

 

bidders on a contract, all other things being equal, the qualified

 

disabled veteran with the lowest bid shall be awarded the contract

 

under this act.

 

     (4) Subject to subsection (3), for projects funded in whole or

 

part with state funds, the construction contract award shall be

 

made to the lowest responsive, responsible bidder who submits a bid

 

that conforms in all material respects with the requirements of the

 

bidding documents.

 

     Sec. 242. (1) This section applies to a project authorized

 

pursuant to an appropriation act.

 

     (1) (2) State agencies, community colleges, and universities

 


shall develop 5-year capital outlay requests, plans, which shall

 

include the need for remodeling and renovations. identify capital

 

outlay needs, including new construction, or the addition,

 

renovation, adaptive reuse, and improvement of existing facilities.

 

For state agencies, community colleges, and universities, the 5-

 

year capital outlay requests plans shall also include the need for

 

special maintenance. These requests plans shall be submitted

 

annually in electronic format to the department, and to members of

 

the JCOS, and to the fiscal agencies not later than November 1 of

 

each year.

 

     (2) (3) The department and the JCOS shall review state agency,

 

community college, and university capital outlay requests plans.

 

The department and the JCOS shall prioritize requests. and The

 

department shall include the department-recommended requests in the

 

annual executive budget recommendation. If a state agency,

 

community college, or university subsequently modifies a request,

 

the revision shall be submitted to the department, members of the

 

JCOS, and the fiscal agencies.

 

     (3) The department and the chairperson and vice-chairperson of

 

the JCOS shall review and evaluate by March 1 of each year capital

 

outlay project requests received from community colleges,

 

universities, and state agencies. All of the following shall be

 

considered when reviewing and evaluating project requests:

 

     (a) Investment in existing facilities and infrastructure.

 

     (b) Life and safety deficiencies.

 

     (c) Occupancy and utilization of existing facilities.

 

     (d) Integration of sustainable design to enhance the

 


efficiency and operations of the facility.

 

     (e) Estimated cost.

 

     (f) Institutional support.

 

     (g) Estimated operating costs.

 

     (h) Impact on tuition, if any.

 

     (i) Impact on job creation in this state.

 

     (j) History of prior appropriations received by the

 

institution through the capital outlay process.

 

     (4) Each recommended request included in the executive budget

 

shall include sufficient state funds for state agency projects and

 

institution funds for college and university projects to provide

 

for professionally developed program statements and schematic

 

plans. The request for program development and schematic planning

 

must be approved by the JCOS and the legislature through the

 

appropriation process.

 

     (5) Program statements and schematic planning documents shall

 

be reviewed by the department and, when the review is completed,

 

shall be submitted to the JCOS as either approved or not approved.

 

     (6) Upon review and approval by the JCOS, the JCOS and the

 

legislature may authorize the project for final design and

 

construction with a line-item appropriation in an appropriation

 

bill. The authorization shall include the legislative lease

 

approval required for state building authority financing.

 

     (7) Preliminary plans shall be submitted to the department for

 

review and approval. The department shall review and approve final

 

plans to be prepared for bidding. Bid A summary of bid results

 

shall be submitted to the JCOS.

 


     (8) The department shall provide for review and oversight of

 

capital outlay projects financed either in total or in part by the

 

state building authority pursuant to the provisions of sections 237

 

and 237a.

 

     (9) Appropriations made for studies and initial plans shall

 

not be considered a commitment on the part of the legislature to

 

appropriate funds for the completion of plans or construction of

 

any project based on the studies or planning documents.

 

     Sec. 242a. The JCOS and department shall annually review the

 

outstanding obligations of the state building authority, as well as

 

the state's lease obligations for previously constructed and state

 

building authority financed projects that provide revenue to the

 

state building authority to retire outstanding bonds. It is the

 

intent of the legislature that the appropriation for state building

 

authority rental payments for the 2013-2014 state fiscal year shall

 

be $300,000,000.00. The appropriation for state building authority

 

rental payments for each subsequent state fiscal year shall be an

 

amount determined by multiplying $300,000,000.00 by a fraction, the

 

numerator of which is the United States consumer price index for

 

the immediately preceding state fiscal year for which the

 

adjustment is being made and the denominator of which is the United

 

States consumer price index for the 2012-2013 state fiscal year.

 

The resultant product shall be rounded to the nearest $1,000.00

 

increment. As used in this section, the "United States consumer

 

price index" means the United States consumer price index for all

 

urban consumers as defined and officially reported by the United

 

States department of labor, bureau of labor statistics.

 


     Sec. 246. (1) The release of allocations may be approved when

 

the legislature has specified either a total authorized cost or has

 

appropriated an amount sufficient to complete the designated

 

project. The authorized cost and program scope of state agency,

 

community college, and university projects shall only be

 

established or revised by specific reference in a budget act. , by

 

concurrent resolution adopted by both houses of the legislature, or

 

inferred by the total amount of any appropriations made to complete

 

plans and construction.

 

     (2) Expenditures under a capital outlay budget act shall be

 

authorized when the release of the appropriation is approved by the

 

board. The board shall approve the release of construction

 

appropriations when the director certifies that a project can be

 

accomplished within the appropriation or authorization and that the

 

project is in compliance with this act. For each project certified,

 

the board, upon the further recommendation of the director, shall

 

approve the release of only those amounts required to complete the

 

project according to the recommended purpose and scope as provided

 

in an appropriation act. Contracts or other commitments shall not

 

be incurred or obligated which will result in the completion of a

 

project which exceeds this purpose and scope. A state agency,

 

community college, or institution of higher education shall not

 

make any commitments for a project until after the release of the

 

appropriation pursuant to this act. The board may approve the

 

release of a part of any appropriation for the purpose of preparing

 

the planning or bidding documents or for investigations which may

 

be necessary to determine whether or not the project can be

 


House Bill No. 5831 (H-1) as amended November 29, 2012

completed within the appropriation.

 

     Sec. 248. (1) This section applies to all state agency,

 

community college, and university capital outlay projects

 

appropriated in any budget act. This section does not apply to lump

 

sums other than planning projects. Projects authorized prior to the

 

amendatory act that added this sentence shall be carried forward

 

consistent with the provisions of this section in effect prior to

 

the date of the amendatory act that added this sentence.

 

     (2) Appropriations made in any budget act for a planning

 

project shall not lapse to the fund from which appropriated at the

 

end of the fiscal year, but shall continue until the purposes for

 

which the sums were appropriated are completed. However, planning

 

authorization for each project which has been authorized for

 

planning for 3 years or more and which has not been authorized for

 

final design and construction in an appropriation act shall be

 

terminated [24] months after the last day of the fiscal year in which

 

the authorization was originally made, unless the project is

 

specifically reauthorized in a budget act. [THE TERMINATION OF

 AUTHORIZATION IN THE IMMEDIATELY PRECEDING SENTENCE DOES NOT APPLY IF PROGRAM AND SCHEMATIC PLANNING DOCUMENTS ARE SUBMITTED BY COMMUNITY COLLEGES AND UNIVERSITIES WITHIN THE TIME FRAME SPECIFIED IN THE IMMEDIATELY PRECEDING SENTENCE.]

 

     (3) Appropriations made in any budget act for final design and

 

construction shall not lapse to the fund from which they are

 

appropriated at the end of the fiscal year, but shall continue

 

until the purposes for which the sums were appropriated are

 

completed. However, final design and construction authorization for

 

each project that has been authorized for final design and

 

construction for 3 years or more and where construction has not

 

commenced shall be terminated [36] months after the last day of the

 

fiscal year in which the authorization was originally made, unless

 


the project is specifically reauthorized in a budget act.

 

     (4) Except as otherwise provided in this section, the balance

 

of any capital outlay project other than a planning project shall

 

not lapse at the end of the fiscal year for which the appropriation

 

was made, but shall continue for not more than 2 fiscal years

 

occurring after the fiscal year for which the appropriation for the

 

project is made.

 

     (4) (5) A capital outlay project may be continued beyond 3

 

fiscal years the limitations contained in this section if the bid

 

for the start of construction of the project is awarded before the

 

end of the second fiscal year occurring after the fiscal year for

 

which the appropriation for the project is made.1 or more of the

 

following conditions apply:

 

     (a) A bid for the start of construction of the project is

 

awarded or construction of the project has commenced.

 

     (b) A capital outlay project for the purchase of property in

 

which a contract is entered into, but the acquisition is not

 

completed. Only the amount necessary to complete the purchase of

 

property pursuant to the contract shall be carried forward.

 

     (c) A federal grant award is pending release.

 

     (d) The project is subject to legal action, the balance shall

 

lapse 30 days after the legal action is settled, or 30 days after a

 

final order is entered, whichever is later.

 

     (e) The unobligated balance of the appropriations for the

 

project may continue for 12 months after a project is substantially

 

completed.

 

     (f) Not later than 45 days after the conclusion of the fiscal

 


year, the director shall notify the JCOS and the fiscal agencies of

 

planning and construction authorizations that will continue beyond

 

limitations specified under this section.

 

     (6) A capital outlay project which is for purchase of property

 

may be continued beyond 3 fiscal years if a contract to purchase

 

property is entered into before the end of the second fiscal year

 

occurring after the fiscal year for which the appropriation for the

 

purchase is made but only the amount necessary to complete the

 

purchase of the property pursuant to the contract shall be carried

 

forward.

 

     (7) A capital outlay project may be continued beyond 3 fiscal

 

years if a federal grant award is pending and the federal rules

 

preclude the award of the bid before the end of the second fiscal

 

year occurring after the fiscal year for which the appropriation

 

for the project was made, but shall not be continued beyond an

 

additional year unless the bid for the start of construction of the

 

project is awarded.

 

     (8) If the bid for the start of construction of the project is

 

awarded before the appropriations for the project are scheduled to

 

lapse pursuant to subsection (4) or (6), the unobligated balance of

 

the appropriations for the project shall not lapse but shall

 

continue for 23 months after a project is substantially completed.

 

     (9) If a capital outlay project is subject to a legal action,

 

the balance shall lapse pursuant to subsections (2) to (8), or 30

 

days after the legal action is settled, or 30 days after a final

 

order is entered, whichever is later.

 

     (5) (10) An unexpended balance which is to lapse pursuant to

 


this section shall lapse to the fund from which the appropriation

 

is made.

 

     (6) (11) A grant or grant-in-aid appropriated for the

 

demolition, acquisition, construction, repair, or maintenance of

 

capital assets shall not be reduced, adjusted, delayed, impounded,

 

lapsed, or otherwise altered by the director for any purpose

 

without legislative approval and shall be carried forward until

 

awarded, in full, to the recipient of the appropriation consistent

 

with legislative intent.until the work is completed or for 36

 

months after the last day of the fiscal year in which the

 

construction appropriation was originally made, whichever comes

 

first.

 

     Sec. 249. (1) If matching revenues for a capital outlay

 

project are received in an amount less than the appropriations

 

contained in a budget act, the state portion of the appropriation

 

shall be reduced in proportion to the amount of matching revenue

 

received.

 

     (2) A state agency, community college, or university shall

 

take the steps necessary to make available federal or other money

 

that may be available and to use all or part 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 a project shall be applied to the total

 

authorized project cost, with state, community college, or

 

university financing shares proportionately adjusted.

 


     Sec. 393. (1) Administrative transfers of appropriations

 

within any department to adjust for current cost and price

 

variations from the enacted budget items, or to adjust amounts

 

between federal sources of financing for a specific appropriation

 

line item, or to adjust amounts between restricted sources of

 

financing for a specific appropriation line item, or to pay court

 

judgments, including court approved consent judgments, or to pay

 

all settlements and claims may be made by the state budget director

 

not less than 30 days after notifying each member of the senate and

 

house appropriations committees. Administrative transfers shall not

 

include adjustments that have policy implications or that have the

 

effect of creating, expanding, or reducing programs within that

 

department. Those transfers may be disapproved by either

 

appropriations committee within the 30 days and, if disapproved

 

within that time, shall not be effective.

 

     (2) A transfer of appropriations within any department other

 

than an administrative transfer pursuant to subsection (1) shall

 

not be made by the state budget director unless approved by both

 

the senate and house appropriations committees. If the state budget

 

director does not approve transfers adopted by both the senate and

 

house appropriations committees under this subsection, the state

 

budget director shall notify each member of both the senate and

 

house appropriations committees of his or her action within 15 days

 

after the senate and house appropriations committees' final

 

approval.

 

     (3) A transfer approved by the appropriations committees shall

 

not be effective unless it is identical in terms of funding sources

 


and dollar amounts.

 

     (4) A transfer approved pursuant to this section shall

 

constitute authorization to transfer the amount recommended and

 

approved. However, the amount shall be reduced by the state budget

 

director to be within the current unobligated amount of the

 

appropriation.

 

     (5) Capital outlay appropriations may be transferred from a

 

state agency, community college, or institution of higher education

 

to provide necessary funds for the completion of an authorized

 

capital outlay project. , if the transfer is approved by JCOS and

 

the appropriations committees. Operating appropriations shall not

 

be transferred into an existing capital outlay account.

 

     (6) Transfers shall not be authorized under any of the

 

following circumstances:

 

     (a) To create a new line-item appropriation or to create a new

 

state program.

 

     (b) To or from an operating appropriation line-item that did

 

not appear in the fiscal year appropriation bills for which the

 

transfer is being made.

 

     (c) To or from a work project as designated under section

 

451a.

 

     (d) Between state governmental funds.

 

     (7) Transfers of appropriations for financing sources shall be

 

made concurrently with related transfers of appropriations for line

 

expenditure items.