HOUSE BILL NO. 5681

April 25, 2024, Introduced by Reps. Phil Green, Kuhn, Schuette, Hall, Outman, BeGole, Borton, Wozniak, Kunse, Aragona, DeBoyer, Thompson, Harris, Tisdel, Schmaltz, DeBoer, Zorn, Neyer, Alexander, Bierlein, Bezotte, Bruck, Martin, VanderWall, Fox and Meerman and referred to the Committee on Government Operations.

A bill to amend 1984 PA 431, entitled

"The management and budget act,"

by amending sections 393 and 451a (MCL 18.1393 and 18.1451a), section 393 as amended by 2012 PA 430 and section 451a as added by 1999 PA 8.

the people of the state of michigan enact:

Sec. 393. (1) Administrative The state budget director may make administrative transfers of appropriations within any department to if all of the following requirements are met:

(a) The administrative transfer is to do 1 of the following:

(i) To adjust for current cost and price variations from the enacted budget items. , or to

(ii) To adjust amounts between federal sources of financing for a specific appropriation line item. , or to

(iii) To adjust amounts between restricted sources of financing for a specific appropriation line item. , or to

(iv) To pay court judgments, including court approved consent judgments. , or to

(v) 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

(b) The administrative transfer does 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

(c) Not less than 30 days before the administrative transfer is made, the state budget director notifies each member of the appropriations committees of the administrative transfer.

(d) The administrative transfer is not disapproved by either appropriations committee within the 30 days and, if 30-day period described in subdivision (c). If disapproved by either appropriations committee within that time, shall not be the administrative transfer is not effective.

(2) A Except as otherwise provided under subsection (1) or (8), the state budget director may not make an administrative 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 approve of the transfer. If the state budget director does not approve transfers adopted decides not to execute a transfer approved 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 this decision within 15 days after the senate and house appropriations committees' final approval.

(3) A transfer approved by the appropriations committees shall under subsection (2) is not be effective unless it is identical in terms of funding sources and dollar amounts.

(4) A transfer approved pursuant to under this section shall constitute constitutes authorization to transfer the amount recommended and approved. However, the amount shall must 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. Operating appropriations shall may not be transferred into an existing capital outlay account.

(6) Transfers shall may 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 must be made concurrently with related transfers of appropriations for line expenditure items.

(8) The state budget director may not make an administrative transfer from the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254, unless the transfer is approved by resolution adopted by a record roll call vote by a majority of the members elected to and serving in each house of the legislature.

Sec. 451a. (1) Except as provided in section 248, a work project appropriation continues to be available until completion of the work or 48 months after the last day of the fiscal year in which the appropriation was originally made, whichever comes first, then the remaining balance lapses to the state fund from which it was appropriated. For work projects established before the effective date of the amendatory act that added this section, the 48-month time period described in this subsection begins on the last day of the fiscal year in the year the amendatory act that added this section takes effect. To be designated as a work project on or after the effective date of the amendatory act that added subdivision (a)(i), a work project shall must meet all of the following criteria:

(a) The work project shall must be for a specific purpose, which must not relate to either of the following:

(i) The critical industry program created in section 88s of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s.

(ii) The Michigan strategic site readiness program created in section 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088t.

(b) The work project shall must contain a specific plan to accomplish its objective.

(c) The work project shall must have an estimated completion cost, which must not use any of the following:

(i) Money expended from the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254.

(ii) Money expended for the purpose the critical industry program created in section 88s of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s.

(iii) Money expended for the purpose of the Michigan strategic site readiness program created in section 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088t.

(d) The work project shall must have an estimated completion date.

(2) The director has the authority to issue directives to lapse existing work project accounts at any time. The director shall notify each member of the senate and house appropriations committees and the fiscal agencies of work projects that the director has ordered to lapse. These directives may be disapproved by either the senate or house appropriations committee within 30 days after the date of notification and, if disapproved within that time, shall the directives are not be effective.

(3) Not later than 45 days after the conclusion of the fiscal year, the director shall notify the senate and house appropriations committees and the fiscal agencies of appropriations proposed to be designated as work projects in accordance with the definition contained in this act. These designations may be disapproved by either appropriations committee within 30 days after the date of notification and, if disapproved within that time, shall the designations are not be effective. The notification shall must include an estimate of the dollar amount of the funds to be designated as work projects and a description of all work projects designated in an appropriations act.

(4) Not later than 120 days after the conclusion of the fiscal year, the director shall prepare and deliver to the senate and house appropriations committees and the fiscal agencies a report that summarizes current work project accounts. This report shall must contain a listing all of the following:

(a) A list of all work project accounts. , the

(b) The balance in each account , the described in subdivision (a).

(c) The amount of funds that lapsed from any previously designated work projects. , and the

(d) The funds that received these the lapses described in subdivision (c).

Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:

(a) Senate Bill No.____ or House Bill No. 5679 (request no. 05589'24 *).

(b) Senate Bill No.____ or House Bill No. 5680 (request no. 05692'24 *).