Mich. Comp. Laws § 17.3

Administrative board; supervisory control over administrative departments; limitations as to appropriations and inter-transfers; duties of administrative officials.

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STATE ADMINISTRATIVE BOARD

Act 2 of 1921

17.3 Administrative board; supervisory control over administrative departments; limitations as to appropriations and inter-transfers; duties of administrative officials.

Sec. 3.

(1) The state administrative board shall exercise general supervisory control over the functions and activities of all administrative departments, boards, commissioners, and officers of the state, and of all state institutions.

(2) Except as provided in subsection (5), the state administrative board shall not have power to transfer any appropriation to the general fund at any time or use the same for any purpose other than that designated by the legislature.

(3) The state administrative board shall not have power to allow to any state department, board, commission, officer, or institution any funds, not appropriated therefor by the legislature, from any source whatever, except as provided in the emergency appropriation act of 1931.

(4) Except as provided in subsection (5), the state administrative board shall not have the power to transfer to any state department, board, commission, officer, or institution any sum from the amount appropriated by the legislature for any other purpose.

(5) Subject to subsection (6), the state administrative board may inter-transfer funds within the appropriation for a particular department, board, commission, officer, or institution. If the inter-transfer of funds could otherwise be accomplished through the transfer process under section 393 of the management and budget act, 1984 PA 431, MCL 18.1393, the state administrative board may carry out the inter-transfer only if both of the following requirements have been met:

(a) The state budget director has first requested the approval of or given notice to, as applicable, the senate and house of representatives appropriations committees regarding the inter-transfer of funds under section 393 of the management and budget act, 1984 PA 431, MCL 18.1393.

(b) The request to inter-transfer funds made under subdivision (a) has not been approved by both appropriations committees by whichever of the following dates is the earliest:

(i) Six session days after the request was made.

(ii) Thirty calendar days after the first session day after the request was made.

(6) The state administrative board may not transfer or inter-transfer any funds that are appropriated to or deposited in the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254, or that are appropriated or transferred for the critical industry program created in section 88s of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088s, or the Michigan strategic site readiness program created in section 88t of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088t.

(7) The state administrative board may in its discretion intervene in any matter touching the functions and activities under this section and may, by resolution or order, advise or direct the department, board, commission, officer, or institution concerned as to the manner in which the function or other activity shall be performed, and may order an interchange or transfer of employees between departments, boards, commissions, and state institutions when necessary. It is hereby made the duty of each and every official and employee connected with any administrative department, office, or institution of the state to follow the direction or order so given; and to perform such services in the carrying out of the purposes and intent of this act as may be required by the board. Failure so to do shall be deemed to constitute malfeasance in office and shall be sufficient cause for removal.

(8) As used in this section, "session day" means a day on which both the senate and the house of representatives convene in session.

History: 1921, Act 2, Imd. Eff. Feb. 23, 1921 ;-- Am. 1927, Act 12, Imd. Eff. Mar. 25, 1927 ;-- CL 1929, 203 ;-- Am. 1931, Act 6, Imd. Eff. Mar. 31, 1931 ;-- CL 1948, 17.3 ;-- Am. 2019, Act 161, Imd. Eff. Dec. 20, 2019 ;-- Am. 2021, Act 143, Imd. Eff. Dec. 27, 2021

Constitutionality Notes:

Individual members of the legislature brought an action challenging the State Administrative Board's authority under MCL 17.3 to transfer appropriated funds from one program to another within a department. The Court of Appeals conferred standing and held that the statutory authority relied upon by the board had been impliedly repealed by subsequent legislative acts. The Michigan Supreme Court agreed that the chairman of the House Appropriations Committee had standing, but reversed the Court of Appeals decision repealing the State Administrative Board's authority to transfer funds. The Michigan Supreme Court held that neither subsequent amendments to the State Administrative Board Act nor the enactment of the Management and Budget Act indicates an intent by the legislature to repeal by implication the Board's authority under MCL 17.3 to transfer funds within a department. House Speaker v State Administrative Bd, 441 Mich 547; 495 NW2d 539(1993).

Notes of Decisions

Cited in 12 cases (1 in the last 5 years), 1939–2023 · leading case: House Speaker v. State Administrative Board

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House Speaker v. State Administrative Board (1993) mich · cites it 10× “, and MCL 17.3; MSA 3.263. The Court of Appeals concluded that the restrictions imposed on the board's transfer authority in 1976 were "clearly repugnant to the unrestricted authorization to intertransfer funds contained in 3 and relied upon by defendants.”

Beals v. Walker (1980) michctapp · cites it 2× “The only other evidence offered by plaintiff at trial on defendant's alleged breach of duty was that defendant failed to conform to the industry custom of providing access ladders inside the grain elevator.”

Ramey v. Michigan Public Service Commission (1941) mich · cites it 2× “" It is important to note that under the provisions of section 17.3 only those employees who were in the classified service were entitled to the annual leave *Page 453 with pay.”

Mobil Oil Corp. v. City of Clawson (1971) michctapp · cites it 8× “The Board of Zoning Appeals, pursuant to Section 17.3 `B. Special Exceptions' has these powers: "B.”

House Speaker v. State Administrative Board (1991) michctapp “Section 3 of the act, MCL 17.3; MSA 3.263, provides: The state administrative board shall exercise general supervisory control over the functions and activities of all administrative departments, *271 boards, commissioners and officers of the state, and of all state…”

Honorl v. J. L. Hudson Co. (1968) michctapp · cites it 2× “" 2 Harper and James, Law of Torts, § 17.3, p 981. [1] From plaintiff's testimony, the jury could properly find a railing necessary to make the premises *631 reasonably safe for her use, [2] that the assembling of the crowd prevented her from using the railing, [3] and that…”

Grycan v. Ford Motor Co. (1939) mich “§17.3). — Reporter. * Dated July 17, 1933.”

Leonard S Bohn v. City of Taylor (2019) michctapp “” Taylor Charter, § 17.3. The Charter does not provide any standards for determining “just and reasonable rates.”

Deerhurst Condominium Owners Association Inc v. City of Westland (2019) michctapp “” Westland Charter, § 17.3. -4- As noted, plaintiffs argue that the City allocated too great a portion of certain administrative costs to the water and sewer department.”

Senate v. Secretary of State (2020) michctapp “It relies instead on Dodak v State Admin Bd, 441 Mich 547 ; 495 NW2d 539 (1993), in which four individual legislators challenged the authority of the State Administrative Board, under MCL 17.3, to transfer funds between state departments.”

In Re J L Janose Minor (2023) michctapp “Defendant submits it is a violation of his constitutional rights to compel such an admission. In pertinent part, the Fifth Amendment of the United States Constitution provides that “[n]o person .”

Mell v. American Coil Spring Co. (1939) mich “…to the department of labor and industry and the board abolished. See 2 Comp. Laws 1929, § 8312 (Stat. Ann. § 17.3). — Reporter.”

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