WHEREAS, Article V, Section 2, of the Constitution of the State of Michigan of 1963 empowers the Governor to make changes in the organization of the Executive Branch or in the assignment of functions among its units which he considers necessary for efficient administration; and

WHEREAS, Article V, Section 4, of the Constitution of the State of Michigan of 1963 authorizes the establishment of temporary commissions or agencies for special purposes with a life of no more than two years and provides that such temporary commissions or agencies need not be allocated within a principal department; and

WHEREAS, Section 9111 of Act No. 368 of the Public Acts of 1978, being Section 333.9111 of the Michigan Compiled Laws, authorized establishment of the Biologic Products Division within the Michigan Department of Public Health; and

WHEREAS, Act No. 204 of the Public Acts of 1986, being Section 333.9112 of the Michigan Compiled Laws created the Pharmaceutical Products Fund in the state treasury and made the Michigan Department of Public Health responsible for administering it; and

WHEREAS, the functions, duties and responsibilities assigned to the Biologic Products Division can be more effectively administered and executed outside the Michigan Department of Public Health, due in part to the need of the Biologic Products Division to meet Federal regulatory and commercial requirements; and

WHEREAS, the long-term capability of the Biologic Products Division to meet Federal regulatory and other commercial requirements can best be achieved by removing the Division from state government as soon as is practicable; and

WHEREAS, the manufacture of products by the Biologic Products Division is not critical to the mission of the Michigan Department of Public Health.

NOW, THEREFORE, I, John Engler, Governor of the State of Michigan, pursuant to the powers vested in me by the Constitution of the State of Michigan of 1963 and the laws of the State of Michigan, do hereby order the following:

I. ESTABLISHMENT OF THE MICHIGAN BIOLOGIC PRODUCTS INSTITUTE AND THE MICHIGAN BIOLOGIC PRODUCTS COMMISSION

Definitions:

In this Executive Order the following definitions shall apply.

“Commission” means the Michigan Biologic Products Commission established as a temporary commission by this Executive Order.

“Director” means the person initially designated by the Governor as the Director of the Michigan Biologic Products Institute established as a temporary agency by this Executive Order.

“Institute” means the Michigan Biologic Products Institute established as a temporary agency by this Executive Order.

“Member” means a member appointed by the Governor to the Michigan Biologic Products Commission established as a temporary commission by this Executive Order.

B. Establishment of the Michigan Biologic Products Institute

The Michigan Biologic Products Institute is established by this Executive Order, pursuant to Article V, Section 4, of the Constitution of the State of Michigan of 1963, as a temporary agency with a life of no more than two years from the effective date of this Executive Order.

The Institute shall be an independent and autonomous entity with the intent that its authority, powers, duties and responsibilities and the authority, powers, duties and responsibilities of the Director, including personnel, budgeting, procurement and management-related functions, be exercised free from the direction and supervision of the principal departments in the Executive Branch.

The Director shall be the head of the Institute within the meaning of the Constitution of the State of Michigan of 1963, and of the Executive Organization Act of 1965, Act No. 380 of the Public Acts of 1965, being Section 16.101 et seq. of the Michigan Compiled Laws, and shall be the Appointing Authority as that term is used in the Constitution of the State of Michigan of 1963, and in the rules and procedures of the Civil Service Commission.

The Biologic Products Division of the Michigan Department of Public Health and the Pharmaceutical Products Fund, established under Sections 9111 and 9112 of Act No. 368 of the Public Acts of 1978, being Section 333.9111 and 333.9112 of the Michigan Compiled Laws are hereby transferred to the Michigan Biologic Products Institute by a Type III transfer, as defined by Section 3 of Public Act No. 380 of the Public Acts of 1965, being Section 16.103 of the Michigan Compiled Laws. The Michigan Biologic Products Institute shall assume all functions, duties, contractual obligations, responsibilities, inventory, tangible and intangible property and employees of the Biologic Products Division of the Michigan Department of Public Health, including administration of the Pharmaceutical Products Fund.

C. Establishment of the Michigan Biologic Products Commission

The Michigan Biologic Products Commission is established by this Executive Order, pursuant to Article V, Section 4, of the Constitution of the State of Michigan of 1963, to serve as a temporary entity with a life of no more than two years from the effective date of this Executive Order.

The Commission shall have three (3) voting members who shall be appointed by the Governor and such members shall serve as members at the pleasure of the Governor. None of these members shall be employees of the Institute. The Governor shall designate one (1) member of the Commission to serve as its chair and that member shall serve as chair at the pleasure of the Governor.

Members of the Commission shall serve without compensation for their membership on the Commission. Members of the Commission may receive reimbursement for necessary travel and expenses according to relevant procedures of the Civil Service Commission and the Department of Management and Budget.

The Commission may promulgate bylaws, not inconsistent with law and with this Executive Order, governing its organization and procedure. A majority of the serving voting members constitutes a quorum for the transaction of business at a meeting, notwithstanding the existence of one (1) or more vacancies. Voting upon actions taken by the Commission shall be conducted by a majority vote of the members present in person at a meeting of the Commission or present by use of amplified telephonic equipment.

The Commission shall meet at the call of the chair and as may be provided in the bylaws of the Commission. Meetings of the Commission may be held anywhere within the State of Michigan. The Commission shall be subject to the Open Meetings Act, Act No. 267 of the Public Acts of 1976, being Section 15.261 et seq. of the Michigan Compiled Laws. The Commission may, as appropriate, make inquiries, studies and investigations, hold hearings and receive comments from the public.

II. DUTIES AND RESPONSIBILITIES OF THE MICHIGAN BIOLOGIC PRODUCTS COMMISSION

The Commission shall provide supervision, policy control and direction to the Institute, and the Director. The Commission may, consistent with the provisions of this Executive Order, establish general goals and objectives relating to the operation and development of the Michigan Biologic Products Institute for the guidance of the Director.

The Michigan Biologic Products Commission shall:

Within eight (8) months of their initial organizational meeting, prepare, or cause to be prepared under contract, a detailed business plan with supporting documentation, including, but not limited to, any necessary legislation, describing the means by which the Michigan Biologic Products Institute will be transferred out of state government and into the private sector within the two year term of its temporary agency status under this Executive Order.

As part of the business plan, cause the fair market value of all state property, inventory, equipment and other assets associated with the manufacture of biologic products to be determined.

Contract with the initial Director; designate and contract with any future Directors.

Perform such other duties and responsibilities as may be assigned or transferred to the Commission by statute or by executive order.

III. OPERATI