CROSS BOUNDARY MEMO OF AGREEMENT                                               H.B. 4116 (S-1):

                                                                                                      FLOOR SUMMARY

House Bill 4116 (Substitute S-1 as by the Committee of the Whole)

Sponsor:  Representative Paul Opsommer

House Committee:  Oversight, Reform, and Ethics

Senate Committee:  Government Operations

CONTENT

The bill would amend an act entitled, "Of certain state officers", to do the following with respect to a cross boundary memorandum of agreement (MOA):

-- Require a governmental unit or officer, before entering into a cross boundary MOA, to forward to the Attorney General all of the following: a copy of the MOA; a written preliminary review of whether the MOA was legally binding or enforceable; and, for an MOA that appeared to be legally binding or enforceable, a written full review.

-- Require a written full review to include consideration of State and Federal constitutional requirements and limitations; and the existence of statutory authority for the MOA and the extent of any authority granted to the entity or officer who would execute it.

-- Require the governmental unit or officer to forward an executed MOA to the Office of the Great Seal and send a copy to the Attorney General.

-- Require each governmental unit, by September 1, 2014, to forward to the Office of the Great Seal a copy of any cross boundary MOA entered into before September 1, 2012, that was still in effect.

-- Require the Office of the Great Seal, by September 1, 2012, to create a publicly accessible central repository of cross boundary MOAs.

The bill would define "cross boundary memorandum of agreement" as a memorandum of agreement, memorandum of understanding, memorandum of record, compact, or similar agreement that a governmental unit of this State proposes to enter into or enters into with the Federal government or a unit of government located outside of this State.  "Governmental unit" would mean a State department, agency, division, or any other entity or subunit derived from those public bodies.

Proposed MCL 14.32a                                                  Legislative Analyst:  Suzanne Lowe

FISCAL IMPACT

Reviews of cross boundary agreements would increase the costs of the governmental units covered by the bill that entered into a cross boundary memorandum of agreement by an unknown amount.  The Department of Attorney General would have cost increases of a minimal amount to receive the detailed reviews and executed agreements. 

Additionally, there could be an increase in costs to the Department of State associated with the establishment and maintenance of a publicly accessible central repository.  The amount of the potential costs should be absorbable within the Department's annual appropriation.

Date Completed:  6-14-12                                                    Fiscal Analyst:  Joe Carrasco

                                                                                                          Elizabeth Pratt

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.