All state agencies responsible for providing and maintaining physical facilities are required to submit an Annual Permanent Improvement Program (APIP) to the Joint Bond Review Committee and the Budget and Control Board. The APIP must include all of the agency's permanent improvement projects anticipated and proposed to be started in the upcoming year. The purpose of the APIP process is to provide the board and the committee with a comprehensive view of each agency's permanent improvement activities. Agencies must submit an APIP to the committee and the board on or before June 15 of each year. The APIP covers the next fiscal year period beginning July 1. The APIP for each higher education agency, including the technical colleges, must be submitted through the Commission on Higher Education which must review the APIP and provide its recommendations to the board and the committee. The board and the committee may develop policies and procedures to implement and accomplish the purposes of this section. The APIP must be approved by August first of the fiscal year for which the APIP applies.

The State shall define a permanent improvement only in terms of capital improvements, as defined by generally accepted accounting principles, for reporting purposes to the State.