November 8, 2012, Introduced by Rep. Poleski and referred to the Committee on Appropriations.
A bill to create certain loan programs for information,
communications, and technology improvements; to facilitate the
operation of certain programs; and to impose certain duties on
certain state officers and employees.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Department" means the department of technology,
management, and budget.
(b) "Information, communications, and technology innovation
revolving fund investment board" or "board" means the information,
communications, and technology innovation fund investment board
created in section 2.
(c) "Information, communications, and technology innovation
revolving fund" or "fund" means the information, communications,
and technology innovation revolving fund created in section 5.
(d) "Information, communications, and technology revolving
loan program" or "loan program" means the information,
communications, and technology loan program created in section 3.
Sec. 2. (1) The information, communications, and technology
innovation revolving fund investment board is created within the
department.
(2) The board shall consist of the following members,
appointed by governor:
(a) The director of the department or his or her designee.
(b) The state chief information officer or his or her
designee.
(c) The chief executive officer of the Michigan economic
development corporation or his or her designee.
(d) Two members of the public.
(3) Members of the board shall serve for terms of 4 years or
until a successor is appointed, whichever is later, except that the
members described in subsection (2)(d) first appointed shall serve
for terms of less than 4 years as determined by the governor.
(4) If a vacancy occurs on the board, the governor shall make
an appointment for the unexpired term in the same manner as the
original appointment.
(5) The governor may remove a member of the board for
incompetence, dereliction of duty, malfeasance, misfeasance, or
nonfeasance in office, or any other good cause.
(6) The first meeting of the board shall be called by the
governor. At the first meeting, the board shall elect from among
its members a chairperson and other officers as it considers
necessary or appropriate. After the first meeting, the board shall
meet at least quarterly, or more frequently at the call of the
chairperson or if requested by 3 or more members.
(7) A majority of the members of the board constitute a quorum
for the transaction of business at a meeting of the board. A
majority of the members present and serving are required for
official action of the board.
(8) The business that the board may perform shall be conducted
at a public meeting of the board held in compliance with the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(9) A writing prepared, owned, used, in the possession of, or
retained by the board in the performance of an official function is
subject to the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246.
(10) Members of the board shall serve without compensation.
However, members of the board may be reimbursed for their actual
and necessary expenses incurred in the performance of their
official duties as members of the board.
Sec. 3. (1) The board shall create and operate an information,
communications, and technology loan program that does all the
following:
(a) Makes loans to state agencies, local units of government,
colleges and universities in this state, school districts, other
public entities that provide public sector services, and not-for-
profit organizations that provide public section services, as
determined by the department.
(b) The board shall develop a management and operation process
for the loan program. The loan program shall include solicitation
of projects, eligibility criteria, selection, management,
monitoring, performance, and accountability, contractual reporting,
loan repayment, project termination, and other management
provisions the board considers necessary.
(c) The board and the department shall make available on its
website a clear description of the loan program, including the
application process, eligibility criteria, and the selection
process.
(d) The board shall solicit, select, monitor, and manage loan
program projects, and has authority to terminate projects on the
basis of performance or because of unavailability of funds.
(e) Loan program application proposals shall be evaluated by
the board based on, but not limited to, the following criteria:
(i) Compliance with funding priorities and benefits to
customers, citizens, and government.
(ii) Return on investment and ability to repay the loan.
(iii) Transferability of solutions, technologies, and processes
to other state agencies or organizations.
(iv) The project's ability to improve or upgrade business and
operational processes.
(v) Innovation and re-engineering of processes to streamline
government or processes.
(vi) Timeline of development and deployment of the project.
(vii) Postloan and design sustainability.
(viii) Geographic location of loan recipients.
(f) Except as otherwise provided in this subdivision,
individual loans under the loan program are limited to a maximum of
$250,000.00 for any individual project. Recipients must demonstrate
the ability to fund and sustain ongoing and future operations.
Loans in the amount of greater than $250,000.00 are available for 1
or more of the following:
(i) Enterprise level, multiagency initiatives.
(ii) Shared service projects with other levels of government or
the private sector.
(iii) Single-agency or program efficiency improvements with
significant return on investment and repayment ability.
(g) The term of a loan under the loan program shall not exceed
5 years.
(h) A loan made under this act shall bear an annual rate of
interest, as established by the board.
(2) The board shall monitor the fund and loan program projects
on a monthly basis and submit quarterly status reports and an
annual assessment and report to the governor, members of the senate
and house appropriations subcommittee on general government, and
the senate and house fiscal agencies. Monitoring and reporting
requirements shall be based on specific loan program awards as well
as basic fund criteria, integrated with the budget process, and
comply with state government accounting and accountability
standards. The annual report shall be submitted not later than
December 31 for the immediately preceding fiscal year.
Sec. 4. The director may establish best practices innovation
management function of the department, with responsibility for
supporting the activities of the board, state government agencies,
local units of government, other jurisdictions, and partnerships
with the private and nonprofit sectors. The department shall
develop, coordinate, and integrate existing and new loan program
innovation strategies, including, but not limited to, the fund,
with state agency business process management goals, strategies,
and operations.
Sec. 5. (1) The information, communications, and technology
innovation revolving fund is created within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund including the repayments of
loans. The state treasurer shall direct the investment of the fund.
The state treasurer shall credit to the fund interest and earnings
from fund investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department shall be the administrator of the fund for
auditing purposes.
(5) The department shall expend money from the fund, upon
appropriation, to create and operate an information,
communications, and technology loan program as provided in this
act.