SENATE BILL No. 970
EXECUTIVE BUDGET BILL
February 3, 2000, Introduced by Senators JOHNSON, SCHWARZ and STILLE and referred to the Committee on Appropriations.
A bill to make appropriations for the department of career development and the Michigan strategic fund and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of the appropriations; and to provide for the disposition of fees and other income received by the state agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of career development and the Michigan strategic fund for the fiscal year ending September 30, 2001, from the funds indicated in this part, the following:
TOTAL APPROPRIATIONS
APPROPRIATION SUMMARY:
Full-time equated unclassified positions. 6.0
Full-time equated classified positions 1,374.0
GROSS APPROPRIATION $ 766,037,200
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 1,148,000
ADJUSTED GROSS APPROPRIATION $ 764,889,200
Federal revenues:
Total federal revenues 521,492,000
Special revenue funds:
Total local revenues 14,962,800
Total private revenues 3,327,100
Total other state restricted revenues 135,545,800 State general fund/general purpose $ 89,561,500
Sec. 102. DEPARTMENT OF CAREER DEVELOPMENT
(1) APPROPRIATION SUMMARY:
Full-time equated unclassified positions 6.0
Full-time equated classified positions 1,139.0
GROSS APPROPRIATION $ 596,954,400
Appropriated from:
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers 1,048,000
ADJUSTED GROSS APPROPRIATION $ 595,906,400
Federal revenues:
Total federal revenues 468,818,800
Special revenue funds:
Total local revenues 14,962,800
Total private revenues 2,670,400
Total other state restricted revenues 85,495,800
State general fund/general purpose $ 23,958,600
(2) DEPARTMENTAL ADMINISTRATION
Full-time equated unclassified positions 6.0
Unclassified salaries $ 546,900
GROSS APPROPRIATION $ 546,900
Appropriated from:
State general fund/general purpose $ 546,900
(3) DEPARTMENT OPERATIONS
Full-time equated classified positions 103.0
Administration--103.0 FTE positions $ 12,255,700
Special project advances 200,000
GROSS APPROPRIATION $ 12,455,700
Appropriated from:
Federal revenues:
CNS 102,000
DED-OSERS, rehabilitation services, vocational
rehabilitation of state grants 4,180,700
DOL-ETA, workforce investment act 645,900
DOL, federal funds 3,279,000
HHS, temporary assistance for needy families 1,514,200
Special revenue funds:
Private-special project advances 200,000
Contingent fund, penalty and interest 397,900
State general fund/general purpose $ 2,136,000
(4) WORKFORCE DEVELOPMENT
Full-time equated classified positions 669.0
Employment training services--574.0 FTE positions $ 61,243,100
Michigan career and technical institute
--95.0 FTE positions 10,163,200
GROSS APPROPRIATION $ 71,406,300
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOC 32,400
Federal revenues:
CNS 532,400
DAG, employment and training 258,300
DED, cooperative demonstration, school-to-work 700,000 DED-OPSE, multiple grants 615,500
DED-OSERS, centers for independent living 58,200
DED-OSERS, rehabilitation long-term training 566,900
DED-OSERS, rehabilitation services, vocational
rehabilitation of state grants 41,327,200
DED-OSERS, state grants for technical related
assistance 55,700
DOL-ETA, workforce investment act 3,172,400
DOL-ETA, multiple grants 596,300
DOL-NOICC 171,900
HHS, temporary assistance for needy families 3,725,100 HHS-SSA, supplemental security income 4,185,500
Special revenue funds:
Local-vocational rehabilitation match 3,247,100
Private-gifts, bequests, and donations 1,396,300
Rehabilitation services fees 1,236,900
Second injury fund 51,500
Student fees 308,000
Training material fees 256,300
State general fund/general purpose $ 8,912,400
(5) CAREER EDUCATION PROGRAMS
Full-time equated classified positions 64.0
Career and technical education--30.0 FTE positions 2,969,700
Postsecondary education--22.0 FTE positions 2,359,900
Adult education--12.0 FTE positions 1,753,100
GROSS APPROPRIATION $ 7,082,700
Appropriated from:
Federal revenues:
Federal revenues 5,192,300
Special revenue funds:
Private occupational school license fees 274,100
Defaulted loan collection fees 102,200
State general fund/general purpose $ 1,514,100
(6) DEPARTMENT GRANTS
Adult basic education $ 11,004,700
Council of Michigan foundations 6,000,000
Focus: HOPE 5,494,300
Gear-up program grants 2,000,000 Job training programs subgrantees 110,048,300
Michigan community service commission
subgrantees 5,900,000
Michigan technical education centers 75,000,000
Personal assistance services 412,000
Pre-college programs in engineering and the
sciences 1,044,700 Supported employment grants 1,308,600
Technology assistance grants 1,150,000
Vocational education act of 1963 39,500,000
Vocational rehabilitation client
services/facilities 50,143,400
Vocational rehabilitation independent living 2,365,700
Welfare to work programs 140,499,000
GROSS APPROPRIATION $ 451,870,700
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOC 1,015,600
Federal revenues:
CNS 4,500,000
DAG, employment and training 13,000,000
DED-OESE, Gear-up 2,000,000
DED-OSERS, centers for independent living 525,000
DED-OSERS, client assistance for individuals
with disabilities 400,000
DED-OSERS, rehabilitation services, vocational
rehabilitation of state grants 34,935,200
DED-OSERS, rehabilitation services facilities 2,272,500
DED-OSERS, supported employment 1,308,600
DED-OSERS, state grants for technical related
assistance 1,150,000
DED-OVAE, adult education 11,004,700
DED-OVAE, basic grants to states 39,500,000
DOL-ETA, workforce investment act 104,602,700
DOL-ETA, multiple grants 4,430,000
HHS, temporary assistance for needy families 127,499,000
HHS-SSA, supplemental security income 2,362,500
Special revenue funds:
Local-vocational rehabilitation match 6,437,400
Local-vocational rehabilitation facilities match 1,278,300
Private-gifts, bequests, and donations 800,000
Contingent fund, penalty and interest account 1,000,000
Tobacco settlement revenue 81,000,000
State general fund/general purpose $ 10,849,200
(7) EMPLOYMENT SERVICE AGENCY
Full-time equated classified positions 303.0
Employment services--251.0 FTE positions $ 49,080,000
Labor market information--52.0 FTE positions 4,512,100
GROSS APPROPRIATION $ 53,592,100
Appropriated from:
Federal revenues:
DED-OSERS - Rehabilitation services, vocational
rehabilitation of state grants 1,300,000
DOL, federal funds 47,149,100
Special revenue funds:
Total local revenues 4,000,000
Contingent fund, penalty and interest account 1,143,000
State general fund/general purpose $ 0
Sec. 103. MICHIGAN STRATEGIC FUND
(1) APPROPRIATION SUMMARY:
Full-time equated classified positions 235.0
GROSS APPROPRIATION $ 169,082,800
Appropriated from:
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers 100,000
ADJUSTED GROSS APPROPRIATION $ 168,982,800
Federal revenues:
Total federal revenues 52,673,200
Special revenue funds:
Total local revenues 0
Total private revenues 656,700
Total other state restricted revenues 50,050,000
State general fund/general purpose $ 65,602,900
(2) MICHIGAN STRATEGIC FUND
Full-time equated classified positions 235.0
Administration--40.0 FTE positions $ 5,483,300
Job creations services--195.0 FTE positions 24,557,000
Michigan promotion program 8,042,500
Economic development job training grants 31,000,000
Community development block grants 50,000,000
Health and aging research and development
initiative 50,000,000
GROSS APPROPRIATION $ 169,082,800
Appropriated from:
Interdepartmental grant revenues:
IDG-MDEQ, air quality fees 100,000
Federal revenues:
DOL-ETA, employment service 770,000
HUD-CPD, community development block grant 51,903,200
Special revenue funds:
Private-Michigan certified development
corporation fees 156,700
Private-special project advances 500,000
Industry support fees 50,000
Tobacco settlement revenue 50,000,000
State general fund/general purpose $ 65,602,900
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending under part 1 for fiscal year 2000-2001 is $225,107,300.00 and state appropriations to be paid to local units of government is $0.00.
(2) If it appears to the principal executive officer of a department or branch that state spending to local units of government will be less than the amount that was projected to be expended for any quarter under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the state budget director, the senate and house of representatives standing committees on appropriations, and the senate and house fiscal agencies.
Sec. 202. As used in this appropriation bill:
(a) "CDBG" means community development block grant.
(b) "CNS" means the corporation for national services.
(c) "DAG" means the United States department of agriculture.
(d) "DED" means the United States department of education.
(e) "DED-OPSE" means the DED office of postsecondary education.
(f) "DED-OESE" means the DED office of elementary and secondary education.
(g) "DED-OSERS" means the DED office of special education rehabilitation services.
(h) "DED-OVAE" means the DED office of vocational and adult education.
(i) "Department" means the department of career development.
(j) "Director" means the director of the department of career development.
(k) "DOL" means the United States department of labor.
(l) "DOL-ETA" means the DOL employment and training act.
(m) "DOL-NOICC" means the DOL national occupational information coordinating committee.
(n) "Fiscal agencies" means the Michigan house fiscal agency and the Michigan senate fiscal agency.
(o) "FTE" means full-time equated.
(p) "Fund" means the Michigan strategic fund.
(q) "HHS" means the United States department of health and human services.
(r) "HHS-SSA" means HHS social security administration.
(s) "HUD-CPD" means HUD community planning and development.
(t) "IDG" means interdepartmental grant.
(u) "MDEQ" means the Michigan department of environmental quality.
(v) "MDOC" means the Michigan department of corrections.
(w) "President" means the president of the Michigan strategic fund.
(x) "U.S.C." means the United States code.
(y) "WIA" means workforce investment act.
Sec. 203. The expenditures and funding sources authorized under this bill are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 204. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter.
Sec. 205. (1) Beginning October 1, a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from one position to another within a department or to positions that are funded with 80% or more federal or restricted funds.
(2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services. The state budget director shall report by the 30th of each month to the chairpersons of the senate and house of representatives standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exception.
Sec. 206. Sixty days before beginning any effort to privatize, the department shall submit a complete project plan to the appropriate subcommittees of the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies. The plan shall include the criteria under which the privatization initiative will be evaluated. The evaluation shall be completed and submitted to the appropriate subcommittees of the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies within 30 months.
Sec. 207. The department shall continue to pilot the use of the Internet to fulfill the reporting requirements in this bill. This may include transmission of reports via electronic mail to the recipients identified for each reporting requirement. Or it may include placement of reports on the Internet or on the Intranet. The appropriations subcommittee shall be notified in writing of the Internet/Intranet site of any such report.
DEPARTMENT OF CAREER DEVELOPMENT
Sec. 301. The Michigan career and technical institute may receive equipment and in-kind contributions for the direct support of staff services through the Pine Lake fund, the Delton-Kellogg school district or other local or intermediate school district, or any combination of local or intermediate school districts in addition to those authorized in part 1.
Sec. 302. The Michigan rehabilitation service shall make every effort to ensure that all sources of matching funds in this state are used to obtain federal vocational rehabilitation funds. All sources include, but are not limited to, privately raised funds to support public nonprofit rehabilitation centers as permitted by the rehabilitation act of 1973, Public Law 93-112, 29 U.S.C. 701 to 717, 720 to 724, 730 to 732, 740 to 741, 750, 752, 760 to 762, 770 to 777b, 777d to 777f, 780, 781 to 785, 790 to 794d, 795 to 795q, and 796 to 796i.
Sec. 303. (1) The appropriation in part 1 to the department for the work first program shall be expended for grants which provide employment and training services to family independence program applicants and recipients and may be expended for grants which provide employment and training services to former family independence program recipients, as well as to recipients of noncash public assistance, specifically child day care, Medicaid, or food stamp benefits. The work first program, however, shall not be construed to be an entitlement to services.
(2) An applicant may be a district, intermediate district, community college, public or private nonprofit college or university, nonprofit organization that provides school-to-work transition programs or that provides employment and training services or vocational rehabilitation programs or state licensed accredited vocational or technical education programs, proprietary school licensed by the state board of education, local workforce development board, or a consortium consisting of any combination of districts, intermediate districts, community colleges, nonprofit organizations described in this subsection, licensed proprietary schools, or public or private nonprofit colleges or universities described in this subsection.
(3) When the work first job search requirements have been completed, if the participant has not found employment, the work first site shall identify the barriers which may have prevented the participant from obtaining employment and assist the client in removing those barriers. The work first site shall also identify appropriate education and job training programs which would be available to the participant.
(4) Work first program participants shall include applicants and recipients of the family independence program established under section 57a of the social welfare act, 1939 PA 280, MCL 400.57a, and such individuals referred to a job club program by a county family independence agency board or a county friend of the court as long as the participation in the job club is part of an application made under this section. Additionally, the department and the family independence agency shall work together to develop a program to provide employment services to former family independence program recipients and to recipients of noncash public assistance benefits such as child day care, Medicaid, or food stamp benefits. This program shall not be construed to be an entitlement to services.
(5) Participants in the work first program shall not be enrolled and counted in membership in a school district or intermediate school district.
(6) The department will work with the family independence agency to coordinate support services to work first participants relating to special/emergency needs.
(7) Work first program participants must receive or be provided an explanation of the program including their benefits and responsibilities before the job interview phase of the program. This explanation shall include clear guidelines with regard to an individual's eligibility for post-employment training support and for applying hours in training toward federal work requirements.
(8) The department shall make every effort to place a minimum of 25% of clients who participate in the work first program in positions that provide wages of $6.00 per hour or more.
(9) The department shall submit to the fiscal agencies and the state budget director by March 15, 2001, a report on the work first program, including the number of participants served under this section, the number of persons who located employment through work first, the average wage of participants who found employment, the number of persons who retained jobs for 90 days, the number of participants placed in employment training and education programs, the number of clients referred to work first who failed to report, a compilation of barriers to employment by incidence and type experienced by participants, and the number of participants referred back to the family independence agency.
(10) A grant awarded under this section may extend beyond the end of the fiscal year in which the grant is awarded and the funds awarded for the grant may be available in the subsequent fiscal year for payment the next fiscal year.
(11) The department shall provide to the state budget director and the fiscal agencies by May 15 and November 15 of each year a report on the work first grants. The report due by May 15 shall provide the information described in this subsection for each grant or contract awarded during the preceding 2 quarters of the state fiscal year. The report due by November 15 shall provide this information for each grant or contract awarded during the preceding full fiscal year. The report shall contain both of the following:
(a) The amount and recipient of each grant or contract.
(b) The number of participants in each service delivery area and the number of clients placed in employment in each service delivery area.
(12) Work first participants may meet the work participation requirement by combining a minimum of 10 hours per week of work with training/education. Training/education may last up to 12 months and the calculated hours may include actual classroom seat time up to 10 hours per week plus up to 1 hour of study time for each hour of classroom seat time. The combined work and training/education hours must equal the minimum number of hours required to meet the federal work participation requirements, 30 hours per week for a single parent, 35 hours per week for 2-parent families (55 hours if utilizing federally funded day care), and 20 hours per week for single parents with a child under the age of 6. Work first participants may enroll in additional hours of classroom seat time beyond 10 hours. However, these hours and the related study time will not count toward the work participation requirement. The training may be no longer than a 1-year program, or the final year of a 2- or 4-year undergraduate program which is designed to lead to immediate labor force attachment no longer than 1-year.
(13) Work first participants may meet the federal work participation requirement through enrollment in a short-term vocational program requiring 30 hours of classroom seat time per week for a period not to exceed 6 months, or by enrollment in full-time internships, practicums, or clinicals required by an academic or training institution for licensure, professional certification, or degree completion, without an additional work requirement. Two-parent families who receive federally funded day care must work an additional 25 hours per week to meet the federal work participation requirement.
(14) Work first participants who lack a high school diploma or GED and who enroll in high school completion or classes to obtain a GED may count up to 10 hours of classroom seat time, combined with a minimum of number of hours of work per week, to meet their federal work participation requirement. There shall be no time limit on high school completion. GED preparation shall be limited to 6 months.
Sec. 304. Of the funds appropriated in part 1 for precollege programs in engineering and the sciences, $620,000.00 shall be provided in the form of a grant to the Detroit precollege engineering program, incorporated and $424,700.00 shall be provided in the form of a grant to the Grand Rapids area precollege engineering program.
Sec. 305. (1) In addition to the funds appropriated for the department in part 1, there is appropriated an amount not to exceed $41,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $2,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $8,000,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 306. Funds earned or authorized by the United States department of labor in excess of the gross appropriation in part 1 for the employment service agency from the United States department of labor are appropriated and may be expended for staffing and related expenses incurred in the operation of its programs. These funds may be spent after the department notifies the appropriations subcommittees of the house and senate of the purpose and amount of each grant award.
Sec. 307. Of the funds appropriated in part 1 for vocational rehabilitation independent living, not less than $1,288,000.00 shall be used for the support of centers for independent living which are in compliance with federal standards for such centers, for the development of new centers in areas presently unserved or undeserved, for technical assistance to centers, and for projects to build capacity of centers to deliver independent living services. Applications for such funds shall be reviewed in accordance with criteria and procedures established by the statewide independent living council, the Michigan rehabilitation services unit within the department, and the Michigan commission for the blind. Funds must be used in a manner consistent with the priorities established in the state plan for independent living. The department is directed to work with the Michigan association of centers for independent living and the local workforce development boards to identify other competitive sources of funding.
Sec. 308. (1) Using all relevant state data sources, the department shall acquire data on former work first participants, whose family independence program case closed due to earnings during fiscal year 1999, for the second year in the continuing longitudinal study started in fiscal year 2000. In addition, first year data will also be compiled on former work first participants whose family independence program case was closed due to earnings during fiscal year 2000. The data will include:
(a) number and percentage employed
(b) average hourly wage of those employed
(c) current hourly wage of those employed
(d) range of wages earned by those employed
(e) number of individuals that earned each wage amount
(f) number and percentage receiving health care benefits from their employer
(g) number and percentage receiving tuition reimbursement from their employer
(h) number and percentage receiving training benefits from their employer
(i) type of jobs obtained in general categories
(j) how long they have retained those jobs, or if they had more than one job, how long at each job
(k) number and percentage continuing to receive any type of public assistance
(l) if the recipient's child(ren) is/or enrolled an attending school
(m) if the former recipient feels that they and their family are better off now than when they were on cash assistance with regard to household income, housing, food and nutritional needs, child health care, and access to health insurance coverage
2) The department shall file a report containing the identified data with the appropriate house and senate appropriation subcommittees and fiscal agencies by March 15, 2001.
(3) The department shall cooperate with the family independence agency in formulating and acquiring the identified data.
(4) The department may retain a third party to conduct the studies to obtain the data identified under this section.
Sec. 309. The department may carry into the succeeding fiscal year unexpended federal pass-through funds to local institutions and governments that do not require additional state matching funds. Federal pass-through funds to local institutions and governments that are received in amounts in addition to those include in part 1 and that do not require additional state matching funds are appropriated for the purposes intended.
Sec. 310. Of the amounts appropriated in part 1 for higher education management operations, $250,000.00 of private occupational school license fees shall fund 3.0 FTE positions and related administrative costs of the proprietary schools oversight unit within the department.
Sec. 311. Money in the school loan exception fee fund that is unexpended at the end of the fiscal year shall not revert to the general fund but shall be carried over to the succeeding fiscal year.
Sec. 312. The department is appropriated an amount not to exceed $100,000.00 form collection of defaulted loans in the Martin Luther King, Jr. - Cesar Chavez - Rosa Parks programs to offset costs of administering the loan collections.
MICHIGAN STRATEGIC FUND
Sec. 401. (1) The appropriation in part 1 to the fund for the job retention retraining program shall be expended to ensure employers have the trained workers they need to compete in the global economy. The fund shall make awards for employers locating or expanding in Michigan and thereby creating significant numbers of new jobs in the state that align with the strategic focus on advanced manufacturing, information technology and biotechnology.
(2) No more than 5% of the total grant appropriated in this section may be expended for administrative costs. Administrative costs may include a biennial study of the state's needs and priorities and program resources will be targeted toward those top identified areas. Administrative costs may also include a periodic study on the long-term return on investment as a result of the program.
(3) The program shall make competitive awards to employees, on an ongoing basis, for redemption through eligible providers based on selection criteria such as consistency with the strategic focus on advanced manufacturing, information technology and biotechnology; high wage and/or skill level; and the training and services are unlikely to occur without the grant assistance. The award process will include a simple notice of intent to be reviewed to see if the application merits further consideration, a full application may be submitted.
(4) The Michigan strategic fund shall establish standards, after public comment, which qualifies eligible providers. These shall include a review of the quality, efficiency and effectiveness of a providers's training programs and services. Eligible providers may include community colleges, non-profits and for-profit organizations and others as determined by the fund.
(5) Not more than $5,000,000.00 of the amount appropriated under this section may be allocated to rapid response that maintain or attract permanent jobs for Michigan residents.
(6) The fund shall report to the state budget director and fiscal agencies each year on the amount and recipient of each award and number of employees expected to be trained or placed under the award. The fund shall also report every other year on customer satisfaction results of the program. The fund shall provide a report, every three years, on the long-term return on investment results of the program.
(7) An eligible provider under this section shall allow the fund's designee to audit all records related to the award for all entities that receive money, either directly or indirectly through the award. An eligible provider shall reimburse the state for all disallowances found in the audit and may be determined ineligible.
(8) No funds appropriated may be expended for the training of permanent striker replacement workers.
(9) If the unemployment rate is below 6% annually, up to 1/3 of the amount appropriated in part 1 may be expended for a new recruitment program that can respond to tight labor market conditions restricting economic growth by providing worker recruitment assistance to companies.
(10) Funds allocated under this section shall be for the purpose of ensuring that employers have trained workers they need to compete in the global economy. The fund shall have on file a specific plan to accomplish its objectives. The program estimated completion cost is the total amount appropriated to the fund and shall have an estimated completion date of September 30, 2005.
Sec. 402. The travel administration may establish and collect a fee to cover the cost of materials and processing of photographic prints, slides, videotapes, and travel product database information that are requested by the media and other segments of the public and private sectors. The fees collected shall be appropriated for all expenses necessary to purchase and distribute these photographic prints, slides, videotapes, and travel product database information. The funds are available for expenditure when they are received by the department of treasury
Sec. 403. The travel administration may receive and expend private revenue related to the use of the "Michigan Great Lakes. Great Times." copyrighted slogan and image. This revenue may come from the direct licensing of the name and image or from the royalty payments from various merchandise sales. Revenue collected is appropriated for the marketing of the state as a travel destination. The funds are available for expenditure when they are received by the department of treasury.
Sec. 404. (1) In addition to the funds appropriated for the fund in part 1, there is appropriated an amount not to exceed $7,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $1,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $500,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 405. The Michigan strategic fund shall submit on or before May 1, 2000, and November 1, 2000, to the appropriations subcommittees and the fiscal agencies a listing of all grants which have been awarded by the fund or by the Michigan economic development corporation from the funds appropriated in part 1. The list shall include all of the following:
(a) The name of the recipient.
(b) The amount awarded to the recipient.
(c) The purpose of the grant.
Sec. 406. (1) The Michigan strategic fund shall provide reports to the relevant senate and house appropriation subcommittees and the fiscal agencies concerning the activities of the Michigan economic development corporation. The report shall include, but not be limited to, the following programs funded in part 1:
(a) Travel Michigan bureau.
(b) National business development.
(c) International business development.
(d) Small, minority, and disabled business services.
(e) CDBG.
(f) Strategic/renaissance fund administration.
(g) Renaissance zones.
(h) Business round tables.
(i) Business and clean air ombudsman.
(j) Economic development job training grants.
(k) Film office.
(l) Health and aging research and development initiative.
(m) Any other programs of the fund.
(2) The reports in subsection (1) shall be submitted by January 1, 2001. The report for each program in subsection (1)(a) through (m) shall include details on the actual spending and number of FTEs for that program.
Sec. 407. As a condition of receiving funds under part 1, any interlocal agreement entered into by the Michigan strategic fund shall include language which states that if a local unit of government has a contract or memorandum of understanding with a private economic development agency, the Michigan economic development corporation will work cooperatively with that private organization in that local area.
Sec. 408. (1) From the funds appropriated in part 1 for the fund, $50,000,000.00 is appropriated for a health and aging research and development initiative to support basic and applied research in health-related areas, with emphasis on issues related to aging.
(2) A health and aging steering committee, appointed by the governor, shall consist of 14 members including the CEO of the Michigan economic development corporation, a member from Michigan State University, the University of Michigan, Wayne State University, the VanAndel Institute, and 2 members from the private sector. The remaining members shall be appointed at large and may include members from the private sector, public sector, or other Michigan universities. The purpose of the steering committee is to provide advice and oversight of the initiative, including the development of criteria for the award of contracts or grants to qualifying universities, institutions, or individuals. The steering committee will make decisions regarding distribution of these grant funds.
(3) Of the funds appropriated, 40% is allocated for a basic research fund, to be distributed on a competitive basis to Michigan universities, and the VanAndel Institute for basic research in health-related areas. Not less than $5,000,000.00 is allocated to research related to aging diseases and health problems. Fifty percent of the appropriated funds are earmarked for a collaborative research fund to support peer-reviewed collaborative grants among Michigan universities and/or private research facilities. Up to 10% of the appropriated funds may be used to support a commercial development fund to support commercialization opportunities for life science research in Michigan. Appropriated funds must be matched with other university, private, or federal funding. Not more than 1% of the appropriated funds may be used for administrative costs of administering the initiative.
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