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Act 431 of 1984 - THE MANAGEMENT AND BUDGET ACT (18.1101 - 18.1594)
***** 18.1221a THIS SECTION IS NOT EFFECTIVE AFTER MARCH 31, 2015: See (2) of 18.1221a *****

431‑1984‑1 ‑ ARTICLE 1 (18.1101...18.1145)
     Section 18.1101 ‑ Short title.
     Section 18.1111 ‑ Meanings of words and phrases.
     Section 18.1112 ‑ Definitions; A, B.
     Section 18.1113 ‑ Definitions; C to E.
     Section 18.1114 ‑ Definitions; F.
     Section 18.1115 ‑ Definitions; I to U.
     Section 18.1121 ‑ Department of management and budget; creation.
     Section 18.1122 ‑ Director as head of department.
     Section 18.1123 ‑ Director; appointment; term.
     Section 18.1124 ‑ Director; powers and duties generally.
     Section 18.1125 ‑ Film production located in state; use of state property; information about potential film locations; definitions.
     Section 18.1131 ‑ Administrative and procedural directives; rules.
     Section 18.1141 ‑ Duties of department.
     Section 18.1145 ‑ Type I transfers to department.
431‑1984‑2 ‑ ARTICLE 2 (18.1201...18.1299)
     Section 18.1201 ‑ Equipment, furniture, and furnishings.
     Section 18.1203 ‑ State automated information processing installations and telecommunications projects and services.
     Section 18.1204 ‑ Standardized risk management policies, practices, and procedures; development and implementation; review, approval, and administration of risk management related programs; insurance or related services; self-insurance options.
     Section 18.1205 ‑ Additional definitions.
     Section 18.1206 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1206a ‑ Designation of racial or ethnic classification in writing developed by state agency; transmission of information to federal agency; “writing” defined.
     Section 18.1207 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1208‑18.1211 ‑  Repealed. 1988, Act 504, Imd. Eff. Dec. 29, 1988.
     Section 18.1213 ‑ "Fund" and "motor vehicle" defined; directives relative to motor vehicles; motor vehicle repair centers and motor pools; creation of motor transport revolving fund; disposition of revenue; assets and liabilities; use of alternative fuels; "alternative fuel" defined.
     Section 18.1215 ‑ Motor vehicle and person to whom motor vehicle assigned; restrictions.
     Section 18.1217 ‑ Directives relative to travel and expenses of officers and unclassified employees of state agencies; approval; meetings of state agencies; travel report.
     Section 18.1219 ‑ Directives for management, operation, maintenance, security, and repair of facilities; determination of space utilization standards; management and operation of state owned facilities; assignment of space; prohibition; management and operation of capitol building, Farnum building, and house office building.
     Section 18.1221 ‑ Rentals and leases; approval; notification; easements; determination of market rental values; building occupancy rates.
     Section 18.1221a ‑ Reports; section ineffective after March 31, 2015; "project" defined.
     Section 18.1222 ‑ Property acquired through installment lease agreement as public property; exemption from property tax.
     Section 18.1223 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1224 ‑ Access to public information; use of telephone system; limitation on charges.
     Section 18.1225 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1227 ‑ Parking; disposition of fees, penalties, and fines; rules.
     Section 18.1237 ‑ Acquisition, construction, lease purchase, improvement, or demolition of facilities; studies, designs, plans, specifications, and contract documents; employment and duties of architects and professional engineers; quality control; independent testing services; final approval; review by attorney general.
     Section 18.1237a ‑ Community college and university capital outlay projects.
     Section 18.1237b ‑ Architects, professional engineers, professional surveyors, and qualified firms; selection.
     Section 18.1237c ‑ Contract with architect, professional engineer, or contractor; liability; limitation; "contractor" defined.
     Section 18.1238 ‑ Universities and community colleges; report.
     Section 18.1239 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1240 ‑ Cost plus construction contract; conditions.
     Section 18.1241 ‑ Contract for construction, repair, remodeling, or demolition of facility; bidding procedure; award; expenditure; director as agent; preference to qualified disabled veteran; responsive and responsible best value bidder; definition.
     Section 18.1241a ‑ Contract for construction, alteration, repair, or rebuilding of state building or other state property; mandatory clause; breach of clause; applicability of section.
     Section 18.1241b ‑ Construction, alteration, repair, or rebuilding of state building or facility; energy efficiency of materials.
     Section 18.1242 ‑ Development of 5-year capital outlay plans; review; priorities; program statements and schematic planning documents; authorization of project for final design and construction; submission of bid results summary to JCOS; oversight; appropriation not considered as commitment.
     Section 18.1242a ‑ Annual review.
     Section 18.1243 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1244 ‑ Scope of construction appropriation; direct labor charges; resident inspector; indirect or administrative overhead costs; separate accounts; design and construction requirements; contract to complete construction of project; conditions.
     Section 18.1245 ‑ Sign at site of state project.
     Section 18.1246 ‑ Release of allocations; approval; total authorized cost or sufficient appropriation; establishment or revision.
     Section 18.1247 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1248 ‑ Applicability of section; capital outlay project; carrying forward prior authorized projects; continuation or lapse of balance; termination of project; continuation of project beyond limits in section; conditions; carrying forward grant or grant-in-aid.
     Section 18.1249 ‑ Matching revenues.
     Section 18.1250 ‑ References to former law.
     Section 18.1251 ‑ Applicability of section to real property of state; development and maintenance of real property records and facility inventories; award of service contracts; employment of land surveyors; directives for disposition of surplus facilities and lands.
     Section 18.1252 ‑ Current data and directives as to facilities; technical assistance as to special maintenance projects.
     Section 18.1253 ‑ Energy conservation improvements.
     Section 18.1254 ‑ Certificate of energy cost savings; distribution of unencumbered balance of appropriation for fuel or utilities.
     Section 18.1261 ‑ Supplies, materials, services, insurance, utilities, third party financing, equipment, printing, and other items; purchase; contract; discretionary decisions by department; competitive solicitation; exceptions; lease or installment purchases; directives; cooperative purchasing agreement; preference to disabled veteran; definitions.
     Section 18.1261a ‑ Recycled supplies, materials, and equipment; effect of noncompliance; exemption; cost considerations; report; “recycled materials” defined.
     Section 18.1261b ‑ Purchase of recycled paper; phase-in period; directives; label; records; definitions.
     Section 18.1261c ‑ Wood or paper products from sustainably managed forests or procurement systems.
     Section 18.1261d ‑ Products containing mercury or mercury compounds; purchase; limitation.
     Section 18.1262 ‑ Limiting solicitation to prequalified vendors.
     Section 18.1263 ‑ Purchase of supplies and materials by state agency to maintain inventories; authorization; limitation; charging appropriation accounts; periodic inventories; obsolescence, damage, or spoilage; fee for purchasing services assistance; cooperative bulk purchasing program for schools and school districts.
     Section 18.1264 ‑ Debarring vendor from participation in bid process and from contract award; notice; finding.
     Section 18.1265 ‑ Federal surplus property; acquisition and distribution.
     Section 18.1267 ‑ Personal property of state agencies; directives for disclosure, transfer, and disposal; sale at fair market value; payment of costs or assessment of handling fee.
     Section 18.1268 ‑ Bidder for state contract as Michigan business; certification; significant business presence required; verification; disclosure; reciprocal preference; list of states giving preference to in-state bidders; waiver of entitlement to claim preference; fraud; felony; penalty; review; recommendations; applicability.
     Section 18.1269 ‑ Centralized services; charges; rates; creation of office services revolving fund; inventory value of paper and stationery operation.
     Section 18.1271 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1273 ‑ Directives for printing of publications by state agency; approval of printing request; determining number and distribution of state reports and publications; style, form, binding, typography, and quality of paper; central storage; publications to be printed on recycled paper; distribution and central storage only of certain publications.
     Section 18.1275 ‑ Sale of office furnishings and equipment to former governors and legislators; fair market value; use of proceeds.
     Section 18.1277 ‑ Expenditure for mailing letter, newsletter, report, or other publication; conditions.
     Section 18.1279 ‑ Consulting services.
     Section 18.1281 ‑ Contract for services; contract for personal services; reports.
     Section 18.1281a ‑ Personal service contracts; report.
     Section 18.1282 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1283 ‑ Central payroll system; department as tax withholding agency; payroll deductions or withholding.
     Section 18.1283a ‑ Payroll and payments by electronic funds transfer; implementation.
     Section 18.1284 ‑ Additional definitions.
     Section 18.1285 ‑ Records; maintenance by head of state agency; listing on retention and disposal schedule; legal custody and physical possession.
     Section 18.1287 ‑ Records management program; purpose; duties of department; directives.
     Section 18.1288 ‑ Inspection or inventory of records.
     Section 18.1289 ‑ Records of archival value; listings of records due for disposal; report; notice of destruction or transfer of record; action to recover records; temporary restraining order.
     Section 18.1292 ‑ Responsibilities of department of history, arts, and libraries.
     Section 18.1293 ‑ Definitions.
     Section 18.1294 ‑ Purchase of goods and services from community rehabilitation organizations; preferred status.
     Section 18.1295 ‑ Committee on purchase of goods and services from community rehabilitation organizations; creation; appointment, qualifications, and terms of members; compensation.
     Section 18.1296 ‑ Duties of committee.
     Section 18.1297 ‑ Priority of selection; specifications; sale of goods and services to other governmental agencies or private businesses.
     Section 18.1298 ‑ Michigan capitol park commission; creation; powers, duties, and functions; appointment, qualifications, and terms of members; expenses; election of chairperson, vice-chairperson, and secretary.
     Section 18.1298a ‑ Michigan capitol park commission; conducting business at public meeting; notice; availability of writings to public; quorum.
     Section 18.1298b ‑ Michigan capitol park; scope of real property; guidelines; resolution; property designated as Michigan veterans' memorial park; jurisdiction.
     Section 18.1298c ‑ Michigan capitol park commission; duties.
     Section 18.1298d ‑ Michigan capitol park commission; powers.
     Section 18.1298e ‑ Michigan capitol park commission; disposition of fees.
     Section 18.1299 ‑ Office of state budget director; higher education institutional data inventory advisory committee; membership; review and audits; auditor general report.
431‑1984‑3 ‑ ARTICLE 3 (18.1301...18.1397)
     Section 18.1301 ‑ Meanings of words and phrases.
     Section 18.1302 ‑ Definitions; A.
     Section 18.1303 ‑ Definitions; D to P.
     Section 18.1304 ‑ Definitions; S.
     Section 18.1305 ‑ Definitions; T, U.
     Section 18.1321 ‑ Office of state budget director; creation; appointment of director; exemption from classified service; term; director as director of department.
     Section 18.1323 ‑ Executive budget function; executive budget proposal; limitation on proposed appropriations.
     Section 18.1331 ‑ Information; assistance.
     Section 18.1332 ‑ Comprehensive state information relative to programs, financing, priorities, management, and performance; investigations; examinations.
     Section 18.1333 ‑ Witnesses; oaths; examinations; compelling production of records; enforcement of orders and subpoenas.
     Section 18.1341 ‑ Executive state budget; evaluations; review.
     Section 18.1342 ‑ Economic analysis, revenue estimating, and monitoring activity.
     Section 18.1343 ‑ Statistical studies; population estimates and projections.
     Section 18.1344 ‑ Annual proposals; review of auditor general's audits; state debt; costs of capital outlay projects.
     Section 18.1345 ‑ State mandated programs; costs; recommendations.
     Section 18.1347 ‑ Hearings; attendance.
     Section 18.1348 ‑ Executive budget submitted to legislature; recommendations for expenditures; additional and new sources of revenue; considerations in balancing budget of each state operating fund.
     Section 18.1349 ‑ Proportion of total state spending from state sources paid to units of local government; compliance of budgets with state constitution.
     Section 18.1350 ‑ State spending paid to units of local government; refunds or other repayments.
     Section 18.1350a ‑ Additional definitions.
     Section 18.1350b ‑ Prohibited taxes; revenue limit; report.
     Section 18.1350c ‑ Prohibited expenditures; amount withdrawn from countercyclical budget and economic stabilization fund considered surplus.
     Section 18.1350d ‑ Revenues required to be refunded; procedures.
     Section 18.1350e ‑ Report.
     Section 18.1351 ‑ Countercyclical budget and economic stabilization fund; creation; purpose; definitions.
     Section 18.1352 ‑ Transfer of funds based on annual growth rate; formula.
     Section 18.1353 ‑ State unemployment rate; table; purposes for which money may be appropriated from fund; appropriation to Michigan state parks endowment fund.
     Section 18.1353a, 18.1353b ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1353c ‑ Repealed. 2007, Act 145, Imd. Eff. Dec. 1, 2007.
     Section 18.1353d ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1353e, 18.1353f ‑ Repealed. 2007, Act 145, Imd. Eff. Dec. 1, 2007.
     Section 18.1354 ‑ Executive budget and appropriations bill; estimate of transfer into or out of fund; installments; transfer of unreserved general fund-general purpose balances.
     Section 18.1354a ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1355 ‑ Adjustment of transfer into or out of fund; condition; adjustment of appropriation from fund.
     Section 18.1356 ‑ Balance in fund; rebate of excess.
     Section 18.1357 ‑ Shortfall in state general fund - general purpose revenue.
     Section 18.1358 ‑ Emergency appropriation from fund; conditions; amounts.
     Section 18.1359 ‑ Combining amounts in fund and in state treasury for purposes of cash management; investment earnings; separate accounting; crediting transfer to fund.
     Section 18.1361 ‑ Submission of tax credit, deduction, and expenditure report.
     Section 18.1362, 18.1362a ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1363 ‑ Transmittal of budget to members of legislature and fiscal agencies; line-item appropriation detail; computer software application.
     Section 18.1366 ‑ Financing and maintenance of state agency subject to act.
     Section 18.1367 ‑ Transmittal of executive budget bills and bills for additional revenue to members of legislature and fiscal agencies; contents of executive budget bill and enacted budget bill.
     Section 18.1367a ‑ “Conference” and “principal” defined.
     Section 18.1367b ‑ Revenue estimating conference; principals; forecasts.
     Section 18.1367c ‑ Requests by conference for assistance and data.
     Section 18.1367d ‑ Conference procedures.
     Section 18.1367e ‑ Publication of economic and revenue forecasts.
     Section 18.1367f ‑ Convening conference upon request of principal.
     Section 18.1367g ‑ Repealed. 1991, Act 72, Imd. Eff. July 11, 1991.
     Section 18.1368 ‑ Monitoring passage of budget bills; assisting governor in explanation of recommendations; revisions to recommendations and estimates; veto recommendations.
     Section 18.1369 ‑ Item or items vetoed by governor; funding from other source.
     Section 18.1371 ‑ Expenditure or obligation exceeding gross appropriation level prohibited; responsibility for exceeding appropriation; report of violation and statement of action taken; division of appropriation into allotments; spending plan; review of allotments; report; remedies to maintain level of program service.
     Section 18.1372 ‑ Adjustment of allotments; withholding payment; limitation on payments; open-end appropriations; reduction or adjustment of allotments; report of action taken; directives for allotment of appropriations.
     Section 18.1373 ‑ Classification of line item in spending categories; spending plan; submission to state budget office; review; approval; resubmission of revised spending plan; submission to legislative committees; posting on public website; adjustments; definitions.
     Section 18.1381 ‑ New or expanded programs.
     Section 18.1382 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1384 ‑ Application for federal financial assistance; notification; form; contents; notice of award, rejection, revision, or deferment of application; report of availability and proposed allocation of grant funds; condition to commitment of grant funds; report.
     Section 18.1386 ‑ Monthly financial reports; preparation; transmittal; contents.
     Section 18.1388 ‑ Monitoring and projecting state spending paid to units of local government; remedial actions.
     Section 18.1389 ‑ Withholding of payment to municipality; purpose; report; “municipality” defined.
     Section 18.1391 ‑ Actual revenues falling below revenue estimates; review of appropriations; recommending reduction of expenditures; review of recommendations; order containing reductions; notice; meeting; approval or disapproval of order; implementation of order; filing order and resolutions; special lapse accounts.
     Section 18.1392 ‑ Reduction of line item appropriations in subsequent legislation.
     Section 18.1393 ‑ Administrative transfers of appropriations within department; purpose; notice; prohibited adjustments; approval or disapproval.
     Section 18.1395 ‑ Financing from federal, state restricted, local, or private funding; financing by multiple fund sources; spending of state matching money; reductions; notice; adjustments; corrective action; prohibited transfer.
     Section 18.1396 ‑ Paying or recording certain expenditures from appropriations; notice of certain settlements or consent judgments; report.
     Section 18.1397 ‑ Appropriations for 2001-2002 fiscal year; supplemental; adjustment; use of unexpended funds from trial court improvements work project; appropriations reduction.
431‑1984‑4 ‑ ARTICLE 4 (18.1401...18.1499)
     Section 18.1401 ‑ Meanings of words and phrases.
     Section 18.1402 ‑ Definitions; C to E.
     Section 18.1403 ‑ Definitions; I to R.
     Section 18.1404 ‑ Definitions; R to W.
     Section 18.1411 ‑ Repealed. 1988, Act 504, Imd. Eff. Dec. 29, 1988.
     Section 18.1421 ‑ Internal control in management of state's financial transactions; powers of director; accounting principles.
     Section 18.1421a ‑ Legislative and judicial access to state financial management system.
     Section 18.1422 ‑ Advances.
     Section 18.1423 ‑ Examination of books, accounts, documents, systems, and financial affairs.
     Section 18.1424 ‑ Production of books, papers, and documents; examination; testimony; oaths.
     Section 18.1426 ‑ Books, records, and systems; adoption and use.
     Section 18.1430 ‑ Capped federal funds, special revenue funds, and healthy Michigan fund; report on amounts and sources.
     Section 18.1431 ‑ Accounting for activities and programs; assignment; classification of funds.
     Section 18.1432 ‑ Merging, combining, or segregating fund.
     Section 18.1434 ‑ Crediting certain revenues to revolving fund; financial plan; report.
     Section 18.1435 ‑ Revolving funds; transferring net income to general fund.
     Section 18.1437 ‑ Advances to revolving fund; repayment; long term advances for acquisition of equipment; limitation.
     Section 18.1441 ‑ Disposition of receipts; directives; subsection (1) inapplicable to state agency within legislative branch.
     Section 18.1442 ‑ Expenditure or transfer of funds appropriated to entity within legislative branch.
     Section 18.1443 ‑ Money received by state agencies; forwarding to state treasurer; crediting to general fund; limitation on transfers.
     Section 18.1444 ‑ Encumbrances and receivables; reporting and recording.
     Section 18.1447 ‑ Scorecard; metric categories; definitions.
     Section 18.1448 ‑ Expenditure of state funds; availability of information on website homepages; "expenditure of state funds" defined.
     Section 18.1451 ‑ Lapse of unencumbered balance of appropriation; unascertainable documents; charging encumbrance to next succeeding fiscal year.
     Section 18.1451a ‑ Work projects.
     Section 18.1452 ‑ Payment and use of amounts appropriated in budget act.
     Section 18.1453 ‑ Appropriations from restricted revenues; limitation on expenditure.
     Section 18.1454 ‑ Appropriation of full-time equated positions; basis; report on status of FTE positions; report containing fiscal year summary of information required in subsection (2).
     Section 18.1455 ‑ Appropriations for unclassified positions; use; eligibility of incumbents of unclassified positions to participate in state contributory insurance and longevity programs; prior years' service as classified employee in determining amount of longevity payment; use of appropriations for salaries and wages; payment of back salaries or wages.
     Section 18.1456 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1458 ‑ Use of amounts authorized for equal employment opportunity services; filling positions; responsibility.
     Section 18.1459 ‑ Repealed. 1988, Act 504, Imd. Eff. Dec. 29, 1988.
     Section 18.1460 ‑ Indirect cost rate or percentage; determination; report; request for appropriations of federal funds not to include funds for indirect costs; charging indirect cost to award, contract, or grant; crediting indirect cost; availability of revenues.
     Section 18.1461 ‑ Audit pursuant to federal law; single audits; conduct; funding; encumbering amounts to finance cost of audits; carrying over unexpended amounts; schedule of expenditures of federal awards.
     Section 18.1462 ‑ Plan to comply with audit recommendations.
     Section 18.1463 ‑ Federal pass-through funds to local institutions and units of local government; appropriation; certain funds not to be expended unless appropriated.
     Section 18.1470 ‑ Procurement contract for services; audit of vendor to verify compliance; provision; availability; exemption; "auditor general" defined.
     Section 18.1483 ‑ Definitions used in MCL 18.1483 to 18.1489.
     Section 18.1484 ‑ System of reporting and general framework to be used in evaluations of internal accounting and administrative control systems; development; modification; notice.
     Section 18.1485 ‑ Internal accounting and administrative control system; establishment and maintenance; elements; duties of head of principal department; reports.
     Section 18.1486 ‑ Internal auditor; appointment; member of state classified executive service; supervision; protection; duties; professional and auditing standards.
     Section 18.1487 ‑ Internal auditor; reports; plan to correct problems, abuses, or deficiencies; public disclosure of information.
     Section 18.1488 ‑ Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
     Section 18.1489 ‑ Evaluation and report by auditor general.
     Section 18.1491 ‑ Fiscal year.
     Section 18.1492 ‑ Including financial statements in comprehensive annual financial report; responsibility; statement format; audit; submission of statements.
     Section 18.1493 ‑ Preliminary, unaudited financial statements including notes of general fund and state school aid fund; submission to legislature and fiscal agency.
     Section 18.1494 ‑ Comprehensive annual financial report; publication; preparation of financial statements; certificates of examination; disclosure of budgetary basis; deviation from generally accepted accounting principles; establishment and use of capital outlay reserve.
     Section 18.1495, 18.1496 ‑  Repealed. 1988, Act 504, Imd. Eff. Dec. 29, 1988.
     Section 18.1497 ‑ Itemized statement of state spending paid to units of local government and total state spending from state sources; transmittal; calculation of spending proportion; publication of report; reporting amount of additional payments; payment of amount; making up shortfall in payments.
     Section 18.1498 ‑ Local government payment fund; creation; reservation of money appropriated to fund; amounts considered state payments to units of local government.
     Section 18.1499 ‑ Closing schedule; procedural directives; appropriation transfer; monthly statement of estimated revenues; latest published estimate.
431‑1984‑5 ‑ ARTICLE 5 (18.1501...18.1594)
     Section 18.1501 ‑ Severability.
     Section 18.1551 ‑ Inquiry into administration of act; removal or suspension of appointed or elective public officer for violation; public officers to which section inapplicable; reporting reasons for suspension or removal.
     Section 18.1591 ‑ Repeal of acts and parts of acts.
     Section 18.1592 ‑ Repeal of MCL 13.17 to 13.26.
     Section 18.1594 ‑ Repeal of executive reorganization orders.