Bill Text: MI SB0247 | 2009-2010 | 95th Legislature | Engrossed


Bill Title: Appropriations; zero budget; department of history, arts, and libraries; provide for fiscal year 2009-2010. Creates appropriation act.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2009-07-15 - Senate Conferees Named 07/15/2009: Sens. Thomas George Cameron Brown Irma Clark-coleman [SB0247 Detail]

Download: Michigan-2009-SB0247-Engrossed.html

SB-0247, As Passed House, June 25, 2009

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 247

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to make appropriations for the department of history,

 

arts, and libraries for the fiscal year ending September 30, 2010;

 

to provide for the expenditure of those appropriations; to provide

 

for the disposition of fees and other income received by the state

 

agencies; to create funds; to provide for the disbursement of

 

certain grants; to provide for reports; and to prescribe powers and

 

duties of certain state departments and certain state and local

 

agencies and officers.

 

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 the department of


 

history, arts, and libraries for the fiscal year ending September

 

30, 2010, from the funds indicated in this part. The following is a

 

summary of the appropriations in this part:

 

DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES

 

APPROPRIATION SUMMARY

 

   Full-time equated unclassified positions.......... 6.0

 

   Full-time equated classified positions.......... 238.0

 

GROSS APPROPRIATION.................................... $     39,711,200

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................            87,700

 

ADJUSTED GROSS APPROPRIATION........................... $     39,623,500

 

   Federal revenues:

 

Total federal revenues.................................         7,780,400

 

   Special revenue funds:

 

Total local revenues...................................           200,000

 

Total private revenues.................................           312,600

 

Total other state restricted revenues..................         4,410,400

 

State general fund/general purpose..................... $     26,920,100

 

   Sec. 102.  DEPARTMENT OPERATIONS

 

   Full-time equated unclassified positions.......... 6.0

 

   Full-time equated classified positions........... 25.0

 

Unclassified salaries.................................. $            100

 

Management services--23.0 FTE positions................               100

 

Building occupancy charges and rent....................         2,664,300

 

Worker's compensation..................................               100

 

Federal, local, and private grants.....................           600,000


 

Cultural economic development--2.0 FTE positions.......           251,300

 

GROSS APPROPRIATION.................................... $      3,515,900

 

    Appropriated from:

 

   Federal revenues:

 

Federal funds..........................................           200,000

 

   Special revenue funds:

 

Local revenues.........................................           200,000

 

Private revenues.......................................           200,000

 

History, arts, and libraries fund......................           101,200

 

State general fund/general purpose..................... $       2,814,700

 

   Sec. 103.  INFORMATION TECHNOLOGY

 

Information technology services and projects........... $         934,400

 

GROSS APPROPRIATION.................................... $        934,400

 

    Appropriated from:

 

   Special revenue funds:

 

Mackinac Island state park fund........................            48,700

 

State general fund/general purpose..................... $        885,700

 

   Sec. 104.  COUNCIL FOR ARTS AND CULTURAL AFFAIRS

 

   Full-time equated classified positions............ 5.0

 

Administration--5.0 FTE positions...................... $        425,500

 

Arts and cultural grants...............................         6,108,500

 

GROSS APPROPRIATION.................................... $      6,534,000

 

    Appropriated from:

 

   Federal revenues:

 

NFAH-HEA, promotion of the arts, partnership

 

   agreements...........................................           850,000

 

   Special revenue funds:


 

History, arts, and libraries fund......................           152,400

 

State general fund/general purpose..................... $      5,531,600

 

   Sec. 105.  MACKINAC ISLAND STATE PARK COMMISSION

 

   Full-time equated classified positions........... 39.0

 

Mackinac Island park operation--24.0 FTE positions..... $      1,306,900

 

Historical facilities system--15.0 FTE positions.......         2,040,100

 

GROSS APPROPRIATION.................................... $      3,347,000

 

    Appropriated from:

 

   Federal revenues:

 

Federal funds..........................................           200,000

 

   Special revenue funds:

 

History, arts, and libraries fund......................           204,400

 

Mackinac Island state park fund........................         1,600,500

 

Mackinac Island state park operation fund..............           167,000

 

State general fund/general purpose..................... $      1,175,100

 

   Sec. 106.  MICHIGAN HISTORICAL PROGRAM

 

   Full-time equated classified positions........... 96.0

 

Historical administration and services--69.0 FTE

 

   positions............................................ $      4,175,100

 

State historic preservation programs--15.0 FTE

 

   positions............................................         1,374,200

 

Heritage publications--5.0 FTE positions...............           701,100

 

Special programs--1.0 FTE positions....................           112,600

 

Thunder Bay national marine sanctuary and underwater

 

   preserve--1.0 FTE positions..........................           147,200

 

Museum stores--4.0 FTE positions.......................           513,400

 

Lighthouse preservation program--1.0 FTE positions.....           251,000


 

GROSS APPROPRIATION.................................... $      7,274,600

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG-MDOT, comprehensive transportation fund............             2,700

 

IDG-MDOT, state aeronautics fund.......................             1,900

 

IDG-MDOT, state trunkline fund.........................            83,100

 

   Federal revenues:

 

DOI-NPS, historic preservation grants-in-aid...........           969,400

 

   Special revenue funds:

 

Private grants.........................................            10,000

 

Private - Mann house trust fund........................           102,600

 

Game and fish protection fund..........................             5,900

 

History, arts, and libraries fund......................           176,300

 

Marine safety fund.....................................               600

 

Michigan heritage publications fund....................           701,100

 

Michigan lighthouse preservation fund..................           251,000

 

Museum operations fund.................................           513,400

 

Special revenue, internal service and pension trust....           243,600

 

State lottery fund.....................................            18,100

 

State services fee fund................................            16,400

 

Waterways fund.........................................             1,300

 

State general fund/general purpose..................... $      4,177,200

 

   Sec. 107.  LIBRARY OF MICHIGAN

 

   Full-time equated classified positions........... 73.0

 

Book distribution centers.............................. $        262,800

 

Library of Michigan operations--71.0 FTE positions.....         4,612,900

 

Library services and technology program--2.0 FTE


 

   positions............................................         5,561,000

 

State aid to libraries.................................         7,300,000

 

Subregional state aid..................................           368,600

 

GROSS APPROPRIATION.................................... $     18,105,300

 

    Appropriated from:

 

   Federal revenues:

 

IMLS - library services and technology act.............         5,561,000

 

   Special revenue funds:

 

History, arts, and libraries fund......................           208,500

 

State general fund/general purpose..................... $     12,335,800

 

 

 

 

 

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 2009-2010 is $31,330,500.00 and state

 

spending from state resources to be paid to local units of

 

government for fiscal year 2009-2010 is $8,218,300.00. The itemized

 

statement below identifies appropriations from which spending to

 

local units of government will occur:

 

DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES

 

Arts and cultural grants............................... $        549,700

 

State aid to libraries.................................         7,300,000

 

Subregional state aid..................................           368,600

 

Total department of history, arts, and libraries....... $      8,218,300


 

     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 appropriation act:

 

     (a) "Department" means the department of history, arts, and

 

libraries.

 

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

 

history, arts, and libraries.

 

     (c) "DOI-NPS" means the United States department of interior,

 

national park service.

 

     (d) "Fiscal agencies" means the house fiscal agency and the

 

senate fiscal agency.

 

     (e) "FTE" means full-time equated.

 

     (f) "IDG" means interdepartmental grant.

 

     (g) "IMLS" means institute of museum and library services.

 

     (h) "MCACA" means the Michigan council for arts and cultural

 

affairs.

 

     (i) "MDOT" means the Michigan department of transportation.

 

     (j) "NEA" means the national endowment for the arts.

 

     (k) "NFAH" means the national foundation of the arts and the

 

humanities.

 

     (l) "Subcommittees" means all members of the appropriate

 

subcommittees of the senate and house of representatives

 

appropriations committees.

 

     Sec. 204. The civil service commission shall bill departments

 

and agencies at the end of the first fiscal quarter for the 1%

 

charge authorized by section 5 of article XI of the state


 

constitution of 1963. Payments shall be made for the total amount

 

of the billing by the end of the second fiscal quarter.

 

     Sec. 205. (1) A hiring freeze is imposed on the state

 

classified civil service. State departments and agencies are

 

prohibited from hiring any new full-time state classified civil

 

service employees and prohibited from filling any vacant state

 

classified civil service positions. This hiring freeze does not

 

apply to internal transfers of classified employees from 1 position

 

to another within a department.

 

     (2) The state budget director may grant exceptions to this

 

hiring freeze when the state budget director believes that the

 

hiring freeze will result in rendering a state department or agency

 

unable to deliver basic services, cause loss of revenue to the

 

state, result in the inability of the state to receive federal

 

funds, or necessitate additional expenditures that exceed any

 

savings from maintaining a vacancy. The state budget director shall

 

report quarterly to the chairpersons of the senate and house of

 

representatives standing committees on appropriations the number of

 

exceptions to the hiring freeze approved during the previous

 

quarter and the reasons to justify the exception.

 

     Sec. 208. The department 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.

 

     Sec. 209. 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 should 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. 210. (1) The department shall report no later than April

 

1, 2010 on each specific policy change made to implement a public

 

act affecting the department that took effect during the prior

 

calendar year to the senate and house appropriations subcommittees

 

on the budget for the department, the joint committee on

 

administrative rules, and the senate and house fiscal agencies.

 

     (2) Funds appropriated in part 1 shall not be used by the

 

department to adopt a rule that will apply to a small business and

 

that will have a disproportionate economic impact on small

 

businesses because of the size of those businesses if the

 

department fails to reduce the disproportionate economic impact of

 

the rule on small businesses as provided under section 40 of the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.240.

 

     (3) As used in this section:

 

     (a) "Rule" means that term as defined under section 7 of the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.207.

 

     (b) "Small business" means that term as defined under section

 

7a of the administrative procedures act of 1969, 1969 PA 306, MCL

 

24.207a.


 

     Sec. 211. The department shall establish and maintain

 

affirmative action programs based on guidelines developed by the

 

state equal opportunity and diversity council which was created by

 

Executive Order No. 2008-22 in order to receive general

 

fund/general purpose dollars in compliance with section 26 of

 

article I of the state constitution of 1963.

 

     Sec. 213. From the funds appropriated in part 1 for

 

information technology, departments and agencies shall pay user

 

fees to the department of information technology for technology-

 

related services and projects. The user fees are subject to

 

provisions of an interagency agreement between the department and

 

the department of information technology.

 

     Sec. 214. Amounts appropriated in part 1 for information

 

technology may be designated as work projects and carried forward

 

to support technology projects under the direction of the

 

department of information technology. Funds designated in this

 

manner are not available for expenditure until approved as work

 

projects under section 451a of the management and budget act, 1984

 

PA 431, MCL 18.1451a.

 

     Sec. 215. (1) The department may provide and enter into

 

agreements to provide general services, training, meetings,

 

information, special equipment, software and facility use, and

 

technical consulting services to other principal executive

 

departments, state agencies, local units of government, the

 

judicial branch of government, other organizations, and patrons of

 

department facilities. Fees for services shall be reasonably

 

related to the cost of providing the services and shall be used to


 

offset the costs of the services. The department may receive and

 

expend funds in addition to those authorized in part 1 which may

 

include, but are not limited to, the following:

 

     (a) Supplying census-related information and technical

 

services, publications, statistical studies, population projections

 

and estimates, and other demographic products.

 

     (b) Document and data imaging services, media, storage, and

 

copies.

 

     (c) Patron copier and document reproduction services and

 

copies.

 

     (d) Conferences, training classes, exhibits, programs, and

 

workshops conducted as part of the department's mission.

 

     (e) Use of specialized equipment, facilities, and software

 

that permit distance learning and meetings, and group decision

 

making.

 

     (f) Special services including the rental of department

 

exhibits and collections.

 

     (g) Application and other fees.

 

     (h) Grants, gifts, and bequests from private or public

 

sources, including those for capital projects.

 

     (2) The funds received under this section shall be deposited

 

in and expended from the history, arts, and libraries fund

 

established in section 216 of this act.

 

     Sec. 216. (1) A fund known as the history, arts, and libraries

 

fund is created in the department. The fund shall be used to

 

receive and expend funds identified in sections 215 and 404(a). All

 

funds in excess of those funds appropriated in part 1 are


 

appropriated for expenditure upon receipt. The fund balance may be

 

carried forward for expenditure in subsequent fiscal years.

 

     (2) The department shall provide a report to the senate and

 

house of representatives appropriations subcommittees on history,

 

arts, and libraries, and to the state budget director, of all

 

revenues to and expenditures from the history, arts, and libraries

 

fund in excess of those amounts appropriated in part 1. The report

 

shall include an estimated fund balance for the fiscal year ending

 

September 30, 2010. The report is due November 1, 2010.

 

     Sec. 217. (1) Due to the current budgetary problems in this

 

state, out-of-state travel for the fiscal year ending September 30,

 

2010 shall be limited to situations in which 1 or more of the

 

following conditions apply:

 

     (a) The travel is required by legal mandate or court order or

 

for law enforcement purposes.

 

     (b) The travel is necessary to protect the health or safety of

 

Michigan citizens or visitors or to assist other states in similar

 

circumstances.

 

     (c) The travel is necessary to produce budgetary savings or to

 

increase state revenues, including protecting existing federal

 

funds or securing additional federal funds.

 

     (d) The travel is necessary to comply with federal

 

requirements.

 

     (e) The travel is necessary to secure specialized training for

 

staff that is not available within this state.

 

     (f) The travel is financed entirely by federal or nonstate

 

funds.


 

     (2) If out-of-state travel is necessary but does not meet 1 or

 

more of the conditions in subsection (1), the state budget director

 

may grant an exception to allow the travel. Any exceptions granted

 

by the state budget director shall be reported on a monthly basis

 

to the senate and house of representatives standing committees on

 

appropriations.

 

     (3) Not later than January 1 of each year, each department

 

shall prepare a travel report listing all travel by classified and

 

unclassified employees outside this state in the immediately

 

preceding fiscal year that was funded in whole or in part with

 

funds appropriated in the department's budget. The report shall be

 

submitted to the senate and house of representatives standing

 

committees on appropriations, the senate and house fiscal agencies,

 

and the state budget director. The report shall include the

 

following information:

 

     (a) The name of each person receiving reimbursement for travel

 

outside this state or whose travel costs were paid by this state.

 

     (b) The destination of each travel occurrence.

 

     (c) The dates of each travel occurrence.

 

     (d) A brief statement of the reason for each travel

 

occurrence.

 

     (e) The transportation and related costs of each travel

 

occurrence, including the proportion funded with state general

 

fund/general purpose revenues, the proportion funded with state

 

restricted revenues, the proportion funded with federal revenues,

 

and the proportion funded with other revenues.

 

     (f) A total of all out-of-state travel funded for the


 

immediately preceding fiscal year.

 

     Sec. 217a. The department shall not approve the travel of more

 

than 1 departmental employee to a specific professional development

 

conference or training seminar that is located outside of this

 

state unless the professional development conference or training

 

seminar is funded by a federal or private funding source and

 

requires more than 1 person from a department to attend, or the

 

conference or training seminar includes multiple issues in which 1

 

employee from the department does not have expertise.

 

     Sec. 218. It is the intent of the legislature to explore

 

supplemental fund sourcing options for the department.

 

     Sec. 219. The department shall not take disciplinary action

 

against an employee for communicating with a member of the

 

legislature or his or her staff.

 

     Sec. 222. The director shall take all reasonable steps to

 

ensure businesses in deprived and depressed communities compete for

 

and perform contracts to provide services or supplies, or both. The

 

director shall strongly encourage firms with which the department

 

contracts to subcontract with certified businesses in depressed and

 

deprived communities for services, supplies, or both.

 

     Sec. 223. Funds appropriated in part 1 shall not be used by a

 

principal executive department, state agency, or authority to hire

 

a person to provide legal services that are the responsibility of

 

the attorney general. This prohibition does not apply to legal

 

services for bonding activities or for those activities that the

 

attorney general authorizes.

 

     Sec. 224. (1) The department shall collaborate with the state


 

board of education, the department of human services, the

 

department of community health, and the department of labor and

 

economic growth to extend the duration of the Michigan after-school

 

partnership and to oversee its efforts to implement the policy

 

recommendations and strategic next steps identified in the Michigan

 

after-school initiative's report of December 15, 2003.

 

     (2) From the funds appropriated in part 1, $25,000.00 may be

 

used to support the Michigan after-school partnership. Funds shall

 

be used to leverage other private and public funding to engage the

 

public and private sectors in building and sustaining high-quality

 

out-of-school-time programs and resources. The cochairs,

 

representing the department, the state board of education, the

 

department of human services, the department of energy, labor, and

 

economic growth, and the department of community health, shall name

 

a fiduciary agent and may authorize the fiduciary to expend funds

 

and hire people to accomplish the work of the Michigan after-school

 

partnership.

 

     (3) Participation in the Michigan after-school partnership

 

shall be expanded beyond the membership of the initial Michigan

 

after-school initiative to increase the representation of parents,

 

youth, foundations, employers, and others with experience in

 

education, child care, after-school and youth development services,

 

and crime and violence prevention, and to include representation

 

from the department. Each year, on or before December 31, the

 

Michigan after-school partnership shall report its progress in

 

reaching the recommendations set forth in the Michigan after-school

 

initiative's report to the legislature and governor.


 

     Sec. 226. (1) In addition to the funds appropriated in part 1,

 

there is appropriated an amount not to exceed $2,000,000.00 for

 

federal contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in this act under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

     (2) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $1,000,000.00 for state

 

restricted contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in this act under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

     (3) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $100,000.00 for local

 

contingency funds. These funds are not available for expenditure

 

until they have been transferred to another line item in this act

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     (4) In addition to the funds appropriated in part 1, there is

 

appropriated an amount not to exceed $750,000.00 for private

 

contingency funds. These funds are not available for expenditure

 

until they have been transferred to another line item in this act

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     Sec. 227. From the funds appropriated in part 1, the

 

department shall implement continuous improvement efficiency

 

mechanisms in the programs administered by the department. The


 

continuous improvement efficiency mechanisms shall identify changes

 

made in programs to increase efficiency and reduce expenditures in

 

the programs. On March 31, 2010 and September 30, 2010, the

 

department shall submit a report to the state budget director, the

 

senate and house appropriation subcommittees, and the senate and

 

house fiscal agencies on the progress made toward increased

 

efficiencies in department programs. At a minimum, each report

 

shall include information on the program review process, the type

 

of improvement mechanisms implemented, and actual and projected

 

expenditure savings as a result of the increased program

 

efficiencies.

 

     Sec. 228. Within 10 days of the receipt of a grant

 

appropriated in the federal, local and private grants line item in

 

part 1, the department shall notify the house and senate

 

chairpersons of the appropriations subcommittees responsible for

 

the department budget, the house and senate fiscal agencies, and

 

the state budget director of the receipt of the grant, including

 

the funding source, purpose, and amount of the grant.

 

     Sec. 229. Based on the public testimony provided in hearings

 

on the budget for the department, it is the intent of the

 

legislature that in any proposed reorganization of the department

 

the component programs currently within the library of Michigan

 

shall be kept together in a state department and the component

 

programs currently within the Michigan historical programs shall be

 

kept together in a state department.

 

     Sec. 230. Not later than September 30, 2010, the department

 

shall prepare and transmit a report that provides for estimates of


 

the total general fund/general purpose appropriation lapses at the

 

close of the fiscal year. This report shall summarize the projected

 

year-end general fund/general purpose appropriation lapses by major

 

departmental program or program areas. The report shall be

 

transmitted to the office of the state budget, the chairpersons of

 

the senate and house appropriations committees, and the senate and

 

house fiscal agencies.

 

     Sec. 231. It is the intent of the legislature that the

 

reorganization of this department shall not jeopardize any federal

 

funding that the Michigan council for arts and cultural affairs,

 

the library of Michigan, or the Michigan historical programs may be

 

eligible for.

 

     Sec. 232. From the funds appropriated in part 1, the

 

department shall use an amount not to exceed $10,000.00 to develop,

 

post, and maintain, on a publicly accessible Internet site, all

 

expenditures made by the department within a fiscal year. The

 

posting shall include the purpose for which each expenditure is

 

made. The department is not required to hire additional employees

 

in order to comply with this section.

 

     Sec. 233. On a bimonthly basis, the department shall report on

 

the number of FTEs in pay status by civil service classification to

 

the senate and house of representatives standing committees on

 

appropriations subcommittees on history, arts, and libraries and

 

the senate and house fiscal agencies.

 

 

 

MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS

 

     Sec. 401. (1) The MCACA in the department shall administer the


 

arts and cultural grants appropriated in part 1.

 

     (2) The MCACA shall render fair and independent decisions

 

concerning arts and cultural grant requests and shall do all of the

 

following:

 

     (a) Use published criteria to evaluate program quality,

 

including all of the following:

 

     (i) The department's intended goals and outcomes for each

 

program.

 

     (ii) The department's quantifiable measures of success in

 

meeting the intended goals and outcomes.

 

     (b) Seek to award grants on an equitable geographic basis to

 

the extent possible given the quality of grant applications

 

received.

 

     (c) Give priority to projects that serve multiple counties,

 

leverage significant additional public and private investment, or

 

demonstrate a significant potential to increase tourism or attract

 

or retain businesses or residents.

 

     (3) No payment shall be made under part 1 except upon

 

application submitted in accordance with MCACA published criteria

 

and procedures, which shall ensure both of the following:

 

     (a) Artistic excellence and artistic merit are the criteria by

 

which applications will be judged, taking into consideration

 

general standards of decency and respect for the diverse beliefs

 

and values of the people of this state.

 

     (b) Criteria clearly indicate that obscenity is without

 

artistic merit, is not protected speech, and will not be funded by

 

a grant from appropriations under part 1.


 

     (4) The MCACA shall provide for fair, equitable, and efficient

 

distribution of funds granted through the regional regranting

 

program. The MCACA shall provide for an annual assessment of grant

 

management and distribution of mini-grant awards by designated

 

regional regranting agencies and review the methodology employed.

 

     (5) The MCACA shall continue and expand its efforts to

 

encourage and support nonprofit arts and cultural organizations to

 

transition from solely volunteer-based organizations to

 

professionally directed operations. Criteria for support include

 

the requirement of collaboration between these organizations and

 

other community organizations.

 

     (6) The department shall withhold undistributed grant payments

 

from a grant recipient who violates the requirements for funding in

 

subsection (3) and may disqualify the grant recipient from award of

 

future grants for a period of not more than 3 years.

 

     Sec. 402. The MCACA may award grants to counties, cities,

 

villages, townships, community foundations and organizations in the

 

following categories:

 

     (a) Anchor organization program for organizations that serve

 

regional and statewide audiences. Anchor organizations shall

 

demonstrate a commitment to education, to mentoring smaller

 

organizations, and to reaching underserved audiences.

 

     (b) Arts projects program.

 

     (c) Arts and learning program.

 

     (d) Artists in residence for education program.

 

     (e) Arts organization development program.

 

     (f) Capital improvement program.


 

     (g) Local arts agencies services program.

 

     (h) Regional regranting program.

 

     (i) Partnership program.

 

     (j) Rural arts and cultural program.

 

     (k) Cultural projects program.

 

     (l) Historical society projects program.

 

     (m) Discretionary grants program.

 

     (n) Cultural and ethnic heritage centers and museums.

 

     Sec. 403. (1) From the state funds appropriated in part 1 for

 

arts and cultural grants, no 1 organization may receive more than

 

15% of this funding.

 

     (2) The MCACA shall make every effort to provide total grant

 

awards in the anchor organization program at a level not to exceed

 

70% of the total amount appropriated for arts and cultural grants.

 

     (3) As documented in the audit report that is submitted as

 

part of the grant application process, the total of all grants

 

awarded to any organization receiving grants within the anchor

 

organization program may not exceed 15% of their "total

 

unrestricted revenues, gains, and other support", as defined by the

 

financial accounting standards board in the accounting standards

 

for not-for-profit organizations or equivalent accounting standards

 

for other types of eligible organizations.

 

     (4) Before any amount appropriated for arts and cultural

 

grants in part 1 may be expended for a grant to an eligible

 

recipient, the department shall execute a grant agreement with the

 

recipient. The grant agreement shall identify the projects funded,

 

specify the category in section 402 under which the grant is


 

awarded, and include the prohibitions and sanctions identified in

 

section 401(3) and (6).

 

     Sec. 404. Grant applicants shall meet and adhere to the

 

following requirements:

 

     (a) Each applicant shall pay a nonrefundable application fee

 

of $300.00 or 3% of the desired grant amount, whichever is less.

 

Application fees shall be deposited in the history, arts, and

 

libraries fund established in section 216. The department may use

 

the application fee to offset its direct and indirect costs.

 

     (b) An applicant for a grant under the anchor organization

 

program shall submit with the application the applicant's most

 

recent annual audit report which states their "total unrestricted

 

revenues, gains, and other support", as defined by the financial

 

accounting standards board in the accounting standards for not-for-

 

profit organizations or equivalent accounting standards for other

 

types of eligible organizations. The audit report shall cover an

 

audit period that ends within 18 months of the date of the

 

application.

 

     (c) Each applicant shall identify proposed matching funds from

 

local and/or private sources on a minimum of a dollar-for-dollar

 

basis. The match may include the reasonable value of services,

 

materials, and equipment as allowed under the federal internal

 

revenue code for charitable contributions.

 

     (d) Each applicant for a grant that charges admission to their

 

institution may offer a discounted rate for admission to current

 

and former United States servicemen and servicewomen, firefighters,

 

police officers, and first responders.


 

     Sec. 405. Each grant recipient shall provide the MCACA with

 

the following:

 

     (a) Proof of the entire amount of the matching funds,

 

services, materials, or equipment by the end of the award period.

 

     (b) Within 30 days following the end of the grant period, a

 

final report that includes the following:

 

     (i) Project revenues and expenditures, including grant matching

 

fund amounts.

 

     (ii) Number of patrons attracted or benefiting during the grant

 

period.

 

     (iii) A narrative summary of each project and its outcome.

 

     (c) By April 7 of the grant year, each recipient of a grant

 

greater than $100,000.00 shall submit an interim report that

 

includes the items identified in subdivision (b).

 

     Sec. 406. (1) The department shall make the following reports:

 

     (a) A report identifying the web site location that contains a

 

list of all grant recipients, sorted by county. This report shall

 

be provided to each legislator within 1 business day of the

 

announcement of annual awards by the MCACA.

 

     (b) A report to the senate and house of representatives

 

appropriations subcommittees, the state budget director, and the

 

fiscal agencies, within 30 days after the MCACA announces the

 

annual grant awards, that includes all of the following:

 

     (i) A listing of each applicant.

 

     (ii) The county of residence or domicile of the applicant.

 

     (iii) The amount requested.

 

     (iv) The amount awarded.


 

     (v) The grant category under which an applicant applied.

 

     (vi) A summary of projects funded for each recipient.

 

     (vii) The expected number of patrons for an applicant during

 

the grant period.

 

     (viii) The amount of matching funds proposed by each applicant.

 

     (ix) A listing containing the applicant, county of residence or

 

domicile of the applicant, and amount awarded for any regranted

 

funds in the preceding fiscal year.

 

     (c) An annual report to the appropriations subcommittees, the

 

state budget director, and the fiscal agencies is due when

 

materials are first distributed by the MCACA seeking grant

 

applications for the subsequent fiscal year. The report shall

 

contain the following:

 

     (i) The MCACA guidelines for awarding grants.

 

     (ii) A summary of any changes in the program guidelines from

 

the previous fiscal year.

 

     (2) The MCACA shall report to the chairpersons of the senate

 

and house of representatives appropriations subcommittees on

 

history, arts, and libraries by August 1 all unexpended or

 

unencumbered discretionary grant funding that is available. The

 

council shall not redistribute any unexpended or unencumbered grant

 

funds during the fiscal year without a 10-day notice to the

 

chairpersons of the senate and house of representatives

 

appropriations subcommittees on history, arts, and libraries.

 

 

 

MICHIGAN HISTORICAL PROGRAM

 

     Sec. 502. Funds collected by the department under sections 6,


 

7, and 7a of 1913 PA 271, MCL 399.6, 399.7, and 399.7a, are

 

appropriated to the department for the purposes for which they were

 

received, upon receipt.

 

     Sec. 503. For the purposes of administering the museum store

 

as provided in section 7a of 1913 PA 271, MCL 399.7a, the

 

department is exempt from section 261 of the management and budget

 

act, 1984 PA 431, MCL 18.1261.

 

     Sec. 505. From the funds appropriated in part 1 for historical

 

administration and services, $18,300.00 shall be allocated to

 

support the operations of the Michigan freedom trail commission as

 

specified in section 4 of the Michigan freedom trail commission

 

act, 1998 PA 409, MCL 399.84. These funds shall be used to

 

reimburse commission members, to pay for necessary contractual

 

services of the commission, and to hire not more than 1.0 FTE

 

position in the department's Michigan historical center to support

 

commission operations.

 

     Sec. 506. Proceeds in excess of costs incurred in the conduct

 

of auctions, sales, or transfers of artifacts no longer considered

 

suitable for the collections of the state historical museum are

 

appropriated to the department and may be expended upon receipt for

 

additional material for the collection. The department shall notify

 

the chairpersons, vice chairpersons, and minority vice chairpersons

 

of the senate and house appropriations subcommittees on history,

 

arts, and libraries 1 week prior to any auctions or sales.

 

     Sec. 507. Unless prohibited by law, the department shall make

 

available to the historical society of Michigan the use of the

 

Michigan history magazine subscriber list, or a portion of the


 

Michigan history magazine subscriber list, at a cost not to exceed

 

the actual expense incurred for providing a single mailing.

 

 

 

LIBRARY OF MICHIGAN

 

     Sec. 601. In order to receive subregional state aid as

 

appropriated in part 1 to the library of Michigan, a subregional

 

library's fiscal agency shall agree to maintain local funding

 

support at the same level in the current fiscal year as in the

 

fiscal agency's preceding fiscal year. If a reduction in

 

expenditures equally affects all agencies in a local unit of

 

government that is the subregional library's fiscal agency, that

 

reduction shall not be interpreted as a reduction in local support

 

and shall not disqualify a subregional library from receiving state

 

aid under part 1. If a reduction in income affects a library

 

cooperative or district library that is a subregional library's

 

fiscal agency or a reduction in expenditures for the subregional

 

library's fiscal agency, a reduction in expenditures for the

 

subregional library shall not be interpreted as a reduction in

 

local support and shall not disqualify a subregional library from

 

receiving state aid under part 1.

 

     Sec. 602. The funds appropriated in part 1 for a subregional

 

library shall not be released until a budget for that subregional

 

library has been approved by the department for expenditures for

 

library services directly serving the blind and persons with

 

disabilities.

 

     Sec. 603. The funds appropriated in part 1 for book

 

distribution centers shall be distributed equally to the public


 

enrichment foundation and the Michigan friends of education.

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