EXECUTIVE ORDER No. 2009 - 35

MICHIGAN ECONOMIC RECOVERY OFFICE      
MICHIGAN ECONOMIC RECOVERY OVERSIGHT BOARD
EXECUTIVE OFFICE OF THE GOVERNOR        
DEPARTMENT OF MANAGEMENT AND BUDGET

WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;

WHEREAS, under Section 8 of Article V of the Michigan Constitution of 1963, it is the responsibility of the Governor to take care that the laws be faithfully executed;

WHEREAS, under Section 8 of Article V of the Michigan Constitution of 1963, each principal department of state government is under the supervision of the Governor unless otherwise provided by the Constitution;

WHEREAS, the federal American Recovery and Reinvestment Act of 2009 ("ARRA"), Public Law 111-5, was signed into law on February 17, 2009 and provides, among other things, tax benefits and federal assistance to states for critical investments in infrastructure, health and human services, education, energy efficiency, housing, transportation, science and technology, and unemployment benefits;

WHEREAS, the ARRA imposes strict accountability, transparency and oversight requirements on all state and local recipients of federal funds distributed under the Act in order to ensure that the recipients' allocation and investment of the federal funds is an appropriate and responsible use of taxpayers' dollars;

WHEREAS, under the ARRA, Michigan will receive billions of dollars in federal assistance, which will help protect millions of residents impacted by the national recession and allow the state to move forward with its plans to grow the economy and create jobs;

WHEREAS, the federal Government Accountability Office has selected

Michigan as one of 16 states that the Government Accountability Office will track over the next 3 years to examine how Michigan is using the federal funds it receives under the ARRA and whether the state is, among other things: (i) preserving and creating jobs and promoting economic recovery; (ii) assisting those most impacted by the recession; (iii) investing in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits; and (iv) stabilizing state and local government budgets in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases;

WHEREAS, 2009 PA 7 authorizes the expenditure of funds for a Michigan economic recovery office and establishes requirements for the use of the funds by that office;

WHEREAS, it is therefore critical that the federal funds that Michigan receives under the ARRA are allocated and invested in an efficient, effective, and coordinated manner so as to fully maximize the impact of the funds, while at the same time ensuring that accountability, transparency, and oversight measures are in place so residents will know that Michigan is investing these funds wisely and responsibly;

NOW THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, by virtue of the power and authority vested in the Governor by the Michigan Constitution of 1963 and Michigan law, order the following:

I. DEFINITIONS

As used in this Order:

A. "ARRA" means the federal American Recovery and Reinvestment Act of 2009, Public Law 111-5.

B. "Department of Management and Budget" or "Department" means the principal department of state government created under Section 121 of The Management and Budget Act, 1984 PA 431, MCL 18.1121.

C. "Michigan Economic Recovery Office" or "Office" means the office created within the Executive Office of the Governor under Section II.

D. "Michigan Economic Recovery Oversight Board" or "Board" means the board created within the Department of Management and Budget under Section III.

E. "State Budget Director" means the individual appointed by the Governor pursuant to Section 321 of The Management and Budget Act, 1984 PA 431, MCL 18.1321.

II. THE MICHIGAN ECONOMIC RECOVERY OFFICE

A. The Michigan Economic Recovery Office is created within the Executive Office of the Governor.  The authority, powers, duties, and functions of the Office, including, but not limited to, budgeting, procurement, and related management functions, shall be performed under the direction and supervision of the Governor.

B. The Office shall include a Director who shall be selected by the Governor and who shall report to the Governor.  The Office may employ personnel as necessary to perform the duties and responsibilities of the Office, including, but not limited to, those duties and responsibilities required for compliance with the ARRA. 

C. The Office shall do all of the following:

1. Coordinate with the principal departments of state government the exchange of all reports, procedures, and other information necessary to assist the Office in performing its duties and responsibilities as required for compliance with the ARRA.

2. Assist in assuring that the federal funds received by this state under the ARRA are allocated and invested in a manner consistent with applicable state and federal law, including, but not limited to, each of the following:

a. ARRA.

b. Title VI and VII of the Civil Rights Act of 1964, Public Law 88-352, 42 USC 2000d to 2000e-17.

c. Title IX of the Education Amendments of 1972, Public Law 92-318, 20 USC 1681 to 1688.

d. Section 504 of the Rehabilitation Act of 1973, Public Law 93-112, 29 USC 793 to 794e.

e. Age Discrimination Act of 1975, Public Law 94-135, 42 USC 6101 to 6107.

f. Fair Housing Act of 1968, Public Law 90-284, 42 USC 3601 to 3619.

g. Fair Credit Reporting Act, Public Law 91-508, 15 USC 1681 to 1681x.

h. Americans With Disabilities Act of 1990, Public Law 101-336, 42 USC 12101 to 12103.

i. Equal Educational Opportunities Act, Public Law 93-380, 20 USC 1703 to 1705.

j. Age Discrimination in Employment Act of 1967, Public Law 90-202, 29 USC 621 to 634.

k. Davis-Bacon Act of 1931, Public Law 74-403, 40 USC 276 to 276a-7, as amended, Public Law 107-217, 40 USC 3141 to 3148.

l. Prevailing Wages On State Projects, 1965 PA 166, MCL 408.551 to 408.558.

m. Elliott-Larsen Civil Rights Act, 1976 PA 453, MCL 37.2101 to 37.2804.

n. Persons With Disabilities Civil Rights Act, 1976 PA 220, MCL 37.1101 to 37.1607.

3. Review the specific selection criteria and requirements for competitive grant awards under the ARRA and identify what, if any, actions should be taken by this state to better position itself as a favorable applicant for assistance.

4. Develop procedures for the effective oversight of the expenditure of the federal funds received by this state under the ARRA so as to assure this state's compliance with applicable state and federal law, including, but not limited to, the ARRA, and to prevent waste, fraud, and abuse.

5. Develop procedures for the collection and timely report of information to the relevant federal agencies regarding the projects or activities for which the federal funds received by this state were obligated and expended, as prescribed by Section 1512 of the ARRA.

6. Consistent with the ARRA and Section 206 of 2009 PA 7, develop, post, and maintain a user-friendly and publicly accessible Internet site to clearly illustrate all state expenditures of federal funds under the ARRA and to serve as a single portal for all Michigan-specific information related to the ARRA, including, but not limited to, each of the following:

a. Funding opportunities available under the ARRA.

b. Projects funded with federal funds distributed under the ARRA.

c. Reports and other information detailing Michigan's expenditure of federal funds under the ARRA.

7. Consistent with Section 209 of 2009 PA 7, develop written statements for issuance to the recipients of the federal funds appropriated under the ARRA, and inclusion in the contracts entered into between the principal departments of state government and the recipients of these federal funds, indicating that the funds are temporary in nature, and that the programs supported by the funds will not be continued with state-financed appropriations upon the expenditure of the temporary funds.

8. Perform all other functions related to the implementation of the ARRA as determined by the Director of the Office or by the Governor.

D. The Office shall coordinate all of the activities of the executive branch of this state regarding the implementation of the ARRA and the expenditure of funds by this state.  All state departments and agencies shall cooperate with the Office in the performance of its duties and responsibilities under this Order.  The Office may request, and state departments and agencies shall provide, information and assistance as the Office requires in the performance of its duties and responsibilities under this Order.

E. The Office is abolished effective December 31, 2011.

III. CREATION OF THE MICHIGAN ECONOMIC RECOVERY OVERSIGHT BOARD

A. The Michigan Economic Recovery Oversight Board is created as an advisory body within the Department of Management and Budget. 

B. The Board shall consist of 6 members appointed by the Governor.  No member of the Board shall be an employee or officer of any local government or of this state.

C. The Governor shall designate one of the members of the Board to serve as its Chairperson.

D. Members of the Board shall serve until December 31, 2011.

E. A vacancy on the Board shall be filled in the same manner as the  original appointment.

IV. CHARGE TO THE BOARD

A. The Board shall act in an advisory capacity to the Governor and the Director of the Office and shall do all of the following:

1. Review and monitor the allocation and investment of the federal funds received by this state so as to ensure that the following objectives are achieved:

a. The funds are allocated in a prompt, fair, and reasonable manner.

b. The funds are leveraged in such a way as to fully maximize the impact of the funds.

c. The recipients and uses of the funds are transparent to the public, and the public benefits of these funds are reported clearly, accurately, and in a timely manner.

d. The funds are used for authorized purposes and instances of fraud, waste, error, and abuse are mitigated.

e. The projects funded under the Act avoid unnecessary delays and cost overruns.

2. Review the procedures developed by the Office for compliance with the transparency and accountability requirements under Section 1512 of the ARRA and, where appropriate, make recommendations for the improvement of those procedures.

3. Review the reports submitted by the Office under Section 1512 of the ARRA and, where appropriate, make recommendations for the improvement of those reports.

4. Solicit public testimony on the manner in which this state has allocated and invested federal funds it has received under the ARRA.

B. The Board shall provide other information, recommendations, or advice relating to this state's compliance with the transparency, accountability, and oversight requirements of the ARRA as requested by the Governor or the Director of the Department.

V. OPERATIONS OF THE BOARD

A. The Board shall be staffed and assisted by personnel from the Department, subject to available funding.  The authority, powers, duties, and functions of the Board, including, but not limited to, budgeting, procurement, and related management functions, shall be performed under the direction and supervision of the State Budget Director.

B. The Board shall adopt procedures consistent with Michigan law and this Order governing its organization and operations.

C. The Board shall select from among its members a Secretary.  Board staff shall assist the Secretary with recordkeeping responsibilities.

D. A majority of the members serving on the Board constitutes a quorum for the transaction of the Board's business.  The Board shall act by a majority vote of its serving members.

E. The Board shall meet at the call of the Chairperson and as may be provided in procedures adopted by the Board.

F. The Board may, as appropriate, make inquiries, conduct studies, conduct investigations, hold hearings, and receive comments from the public.  The Board may also consult with outside experts in order to perform its duties, including, but not limited to, experts in the private sector, organized labor, government agencies, and at institutions of higher education.

G. Members of the Board shall serve without compensation.  Members of the Board may receive reimbursement for necessary travel and expenses according to relevant statutes and the rules and procedures of the Department of Management and Budget and the Civil Service Commission, subject to available funding.

H. Members of the Board shall discharge the duties of the Board in a nonpartisan manner, in good faith, and with the degree of diligence, care, and skill that an ordinarily prudent person would exercise under similar circumstances in a like position.

I. Members of the Board are public servants subject to 1968 PA 317, MCL 15.321 to 15.330, and are subject to any other applicable law with respect to conflicts of interest.  The Board shall establish policies and procedures requiring periodic disclosure of relationships which may give rise to conflicts of interest.

J. The Board may hire or retain contractors, sub-contractors, advisors, consultants, and agents, and may make and enter into contracts necessary or incidental to the exercise of the powers of the Board and the performance of its duties as the Director of the Department deems advisable and necessary, in accordance with this Order, and the relevant statutes, rules, and procedures of the Civil Service Commission and the Department of Management and Budget.

K. The Board may accept donations of labor, services, or other things of value from any public or private agency or person.

L. Members of the Board shall refer all legal, legislative, and media contacts to the Office.

M. All departments, committees, commissioners, or officers of this state, or of any political subdivision of this state, shall give to the Board or to any member or representative of the Board, any necessary assistance required by the Board or any member or representative of the Board, in the performance of the duties of the Board so far as is compatible with its, his, or her duties.  Free access shall also be given to any books, records, or documents in its, his, or her custody, relating to matters within the scope of inquiry, study, or review of the Board.

N.The Board is abolished effective December 31, 2011.

VI. MISCELLANEOUS

A. Any rules, orders, bylaws, contracts, and agreements relating to the assigned functions lawfully adopted prior to the effective date of this Order shall continue to be effective until amended, rescinded, or terminated.

B. This Order shall not abate any suit, action, or other proceeding lawfully commenced by, against, or before any entity affected under this Order.  Any suit, action, or other proceeding may be maintained by, against, or before the appropriate successor of any entity affected under this Order.

C. The invalidity of any portion of this Order shall not affect the validity of the remainder of the Order, which may be given effect without any invalid portion. Any portion of this Order found invalid by a court or other entity with proper jurisdiction shall be severable from the remaining portions of this Order.

D. This Order is effective upon filing.

Given under my hand and the Great Seal of the State of Michigan this 9th day of June, in the year of our Lord, two thousand nine.
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JENNIFER M. GRANHOLM
GOVERNOR
BY THE GOVERNOR:
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Secretary of State