SENATE BILL No. 971

EXECUTIVE BUDGET BILL

February 3, 2000, Introduced by Senators BENNETT, YOUNG, STILLE and JOHNSON and referred to the Committee on Appropriations.

A bill to make appropriations for the department of consumer and industry services and certain other state purposes for the fiscal year ending September 30, 2001; to provide for the expenditure of those appropriations; to provide for the imposition of certain fees; to provide for the disposition of fees and other income received by the state agencies; to provide for reports to certain persons; and to prescribe powers and duties of certain state departments and certain state and local agencies and officers.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. Subject to the conditions set forth in this bill, the amounts listed in this part are appropriated for the department of consumer and industry services for the fiscal year ending September 30, 2001, from the funds identified in this part. The following is a summary of the appropriations in this part:

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

APPROPRIATIONS SUMMARY:

Full-time equated unclassified positions. 64.5

Full-time equated classified positions 4,154.4

GROSS APPROPRIATION $ 521,735,700

Interdepartmental grant revenues:

Total interdepartmental grants and

intradepartmental transfers 4,143,600

ADJUSTED GROSS APPROPRIATION $ 517,592,100

Federal revenues:

Total federal revenues 231,507,800

Special revenue funds:

Total private revenues 745,900

Total other state restricted revenues 205,993,800

State general fund/general purpose $ 79,344,600

Sec. 102. EXECUTIVE DIRECTION

Full-time equated unclassified positions 64.5

Full-time equated classified positions 94.0

Unclassified salaries $ 5,511,000

Executive director programs--13.0 FTE positions 2,086,500

Policy development--10.0 FTE positions 1,438,200

Utility consumer representation 550,000

Regulatory efficiency improvements/backlog

reduction initiative 750,000

MES board of review program--21.0 FTE positions 1,695,600

Office of legal affairs--41.0 FTE positions 4,221,800

Energy office--9.0 FTE positions 2,555,500

GROSS APPROPRIATION $ 18,808,600

Appropriated from:

Federal revenues:

Federal funds 4,383,700

Special revenue funds:

Bank fees 177,600

Boiler fees 34,600

Construction code fund 305,800

Consumer finance fees 41,500

Corporations and securities fees 275,100

Credit union fees 85,900

Elevator fees 38,600

Fees and collections/asbestos 10,900

Fire service fees 23,800

Health professions regulatory fund 1,901,200

Health systems fees and collections 65,800

Insurance regulatory fees 578,100

Licensing and regulation fees 450,200

Liquor purchase revolving fund 1,219,400

Manufactured housing commission fees 154,600

Michigan state housing development authority

fees and charges 312,900

Motor carrier fees 27,600

Property development fees 4,500

Public utility assessments 1,990,400

Safety education and training fund 198,100

Second injury fund 67,900

Self-insurers security fund 17,900

Silicosis and dust disease fund 26,100

Utility consumer representation fund 550,000

Worker's compensation administrative revolving

fund 60,100

State general fund/general purpose $ 5,806,300

Sec. 103. COUNCIL FOR ARTS AND CULTURAL AFFAIRS

Full-time equated classified positions 9.0

Administration--9.0 FTE positions $ 884,200

Arts and cultural grants 21,548,700

GROSS APPROPRIATION $ 22,432,900

Appropriated from:

Federal revenues:

Federal funds 700,000

State general fund/general purpose $ 21,732,900

Sec. 104. FIRE SAFETY

Full-time equated classified positions 57.0

Office of fire safety--57.0 FTE positions $ 4,865,100

GROSS APPROPRIATION $ 4,865,100

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health, inspection

contract 109,200

Federal revenues:

Federal funds 1,298,300

Special revenue funds:

Fire alarm regulation fees 173,200 Fire service fees 1,706,100

State general fund/general purpose $ 1,578,300

Sec. 105. MANAGEMENT SERVICES

Full-time equated classified positions 178.0

Administrative services--84.0 FTE positions $ 5,853,300

Technology support--94.0 FTE positions 13,689,800

Health services information systems 750,000

Insurance automation 750,000

Building occupancy and rent 13,827,300

Workers' compensation 1,055,000

Special project advances 740,000

GROSS APPROPRIATION $ 36,665,400

Appropriated from:

Federal revenues:

Federal funds 1,305,700

Special revenue funds:

Private-special project advances 740,000

Bank fees 355,700

Boiler fee revenue 226,100

Construction code fund 1,161,300

Consumer finance fees 148,400

Corporation and securities fees 2,597,800

Credit union fees 250,300

Elevator fees 265,900

Fees and collections 34,000

Fees and collections/asbestos 83,000

Fire service fees 31,700 Health professions regulatory fund. 4,343,600

Health systems fees and collections 435,000

Insurance regulatory fees 2,438,300

Licensing and regulation fees 2,026,600

Liquor purchase revolving fund 7,918,500

Manufactured housing commission fees 121,500

Michigan state housing development authority

fees and charges 2,560,100

Motor carrier fees 197,900

Property development fees 29,000

Public utility assessments 2,318,100

Safety education and training fund 677,000

Second injury fund 302,800

Self insurers' security fund 78,900

Silicosis and dust disease fund 113,000

Tax tribunal fees 41,000

Worker's compensation administrative revolving

fund 1,330,700

State general fund/general purpose $ 4,533,500

Sec. 106. FINANCIAL SERVICES AND CORPORATIONS

Full-time equated classified positions 379.0

Manufactured housing commission, per diem $50.00 $ 7,800

Manufactured housing and land resources program--15.0

FTE positions 1,496,900

Corporate services--61.0 FTE positions 5,007,800

Investment oversight--29.0 FTE positions 2,605,100

Local manufactured housing communities inspections 250,000

Property development group--13.0 FTE positions 1,415,600

Remonumentation grants 5,000,000

Financial institutions administration--18.0 FTE

positions 1,341,300

Bank regulation-50.0 FTE positions 5,318,400

Credit union regulation--43.0 FTE positions 3,672,900

Financial institution consumer protection--21.0 FTE

positions 1,901,700

Financial institution policy and legislation

--5.0 FTE positions 383,000

Federal regulatory projects 50,600

Insurance bureau--124.0 FTE positions 13,413,100

GROSS APPROPRIATION $ 41,864,200

Appropriated from:

Federal revenues:

Federal funds 50,600

Special revenue funds:

Private-travel funds 5,900

Bank fees 6,294,200

Consumer finance fees 2,162,300

Corporation and securities fees 8,032,900

Credit union fees 4,160,800

Insurance continuing education fees 432,400

Insurance licensing and regulation fees 3,238,100

Insurance regulatory fees 9,604,800

Limited liability partnership revenue 10,000

Manufactured housing commission fees 1,910,600

Multiple employer welfare arrangement 131,900

Property development fees 236,600

Remonumentation fees 5,593,100

State general fund/general purpose $ 0

Sec. 107. PUBLIC SERVICE COMMISSION

Full-time equated classified positions 143.0

Administration, planning and regulation--143.0 FTE

positions $ 15,358,900

GROSS APPROPRIATION $ 15,358,900

Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

Federal funds 419,200

Special revenue funds:

Motor carrier fees 1,843,300

Public utility assessments 13,096,400

State general fund/general purpose $ 0

Sec. 108. LIQUOR CONTROL COMMISSION

Full-time equated classified positions 179.0

Management support services--39.0 FTE positions $ 2,859,700

Liquor licensing and enforcement-140.0

FTE positions 10,646,800

Liquor law enforcement grants 6,000,000

Grant to department of agriculture, wine industry

council 457,200

GROSS APPROPRIATION $ 19,963,700

Appropriated from:

Special revenue funds:

Liquor license revenue 10,929,400

Liquor purchase revolving fund 8,577,100

Nonretail liquor license revenue 457,200

State general fund/general purpose $ 0

Sec. 109. MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY

Full-time equated classified positions 234.0

Payments on behalf of tenants $ 70,000,000

Housing and rental assistance program--227.0 FTE

positions 22,579,600

Automatic data processing-7.0 FTE positions 987,200

Homeless program 5,290,800

GROSS APPROPRIATION $ 98,857,600

Appropriated from:

Federal revenues:

Federal funds 84,242,300

Special revenue funds:

Michigan state housing development authority

fees and charges 14,615,300

State general fund/general purpose $ 0

Sec. 110. TAX TRIBUNAL

Full-time equated classified positions 14.0

Operations--14.0 FTE positions $ 1,633,500

GROSS APPROPRIATION $ 1,633,500

Appropriated from:

Special revenue funds:

Tax tribunal fees 627,400

State general fund/general purpose $ 1,006,100

Sec. 111. GRANTS

Fire protection grants $ 6,675,000

GROSS APPROPRIATION $ 6,675,000

Appropriated from:

Special revenue funds:

Liquor purchase revolving fund 6,675,000

State general fund/general purpose $ 0

Sec. 112. HEALTH REGULATORY SYSTEMS

Full-time equated classified positions 340.0

Health systems administration--181.0

FTE positions $ 16,702,100

Nursing home quality incentive grants 10,000,000

Emergency medical services program state staff--

7.0 FTE positions 886,100

Radiological health administration and projects--

24.0 FTE positions 1,940,100

Substance abuse program administration-4.0 FTE

positions 400,000

Emergency medical services grants and contracts 1,062,100

Health services--124.0 FTE positions 12,982,400

GROSS APPROPRIATION $ 43,972,800

Appropriated from:

Federal revenues:

Federal funds 18,050,100

Special revenue funds:

Controlled substance license fees 1,338,400

Health professions regulatory fund 10,385,200

Health systems fees and collections 3,672,400

Nurse professional fund 450,000

State general fund/general purpose $ 10,076,700

Sec. 113. REGULATORY SERVICES

Full-time equated classified positions 293.0

AFC, children's welfare and day care licensure--293.0

FTE positions $ 24,093,200

GROSS APPROPRIATION $ 24,093,200

Appropriated from:

Federal revenues:

Federal funds 9,548,600

Special revenue funds:

Health systems fees and collections 152,700

Licensing fees 480,400

State general fund/general purpose $ 13,911,500

Sec. 114. OCCUPATIONAL REGULATION

Full-time equated classified positions 239.0

Commissions and boards $ 41,900

Code enforcement--99.0 FTE positions 7,688,600

Code enforcement flexibility 1,155,500

Boiler inspection program--18.0 FTE positions 1,503,100

Elevator inspection program--23.0 FTE positions 1,809,200

Commercial services--99.0 FTE positions 9,020,600

GROSS APPROPRIATION $ 21,218,900

Appropriated from:

Special revenue funds:

Boiler fee revenue 1,646,500

Construction code fund 8,638,200

Elevator fees 1,913,600

Health professions regulatory fund 227,400

Homeowner construction lien recovery fund 1,528,900 Licensing and regulation fees 6,739,800

Real estate appraiser continuing education fund 45,000

Real estate education fund 217,500

State general fund/general purpose $ 262,000

Sec. 115. EMPLOYMENT RELATIONS

Full-time equated classified positions 28.0

Fact finding and arbitration $ 154,300

Employment and labor relations--28.0 FTE positions 2,925,200

GROSS APPROPRIATION $ 3,079,500

Appropriated from:

Federal revenues:

Federal funds 30,000

Special revenue funds:

Publication revenue 10,000

State general fund/general purpose $ 3,039,500

Sec. 116. SAFETY AND REGULATION

Full-time equated classified positions 277.0

Commissions and boards $ 27,700

Employment standards enforcement--38.0 FTE

positions 2,525,800

Subgrantees 1,026,900

Occupational safety and health--239.0 FTE

positions 21,975,800

GROSS APPROPRIATION $ 25,556,200

Appropriated from:

Federal revenues:

Federal revenues 12,202,300

Special revenue funds:

Fees and collections/asbestos 694,200

Safety education and training fund 5,444,800

State general fund/general purpose $ 7,214,900

Sec. 117. WORKER'S DISABILITY COMPENSATION

Full-time equated classified positions 171.4

Administration--119.0 FTE positions $ 8,302,400

Board of magistrates administration--8.0 FTE

positions 1,819,500

Appellate commission administration-11.4 FTE

positions 843,300

Supplemental benefit fund 1,300,000

Insurance funds administration--33.0 FTE positions 10,163,300

Automatic data processing 506,000

Grant to the department of career development -

hire the handicapped program 50,000

GROSS APPROPRIATION $ 22,984,500

Appropriated from:

Special revenue funds:

Second injury fund 6,463,600

Self insurers' security fund 1,723,000

Silicosis and dust disease fund 2,532,700

Worker's compensation administration revolving

fund 2,082,300

State general fund/general purpose $ 10,182,900

Sec. 118. UNEMPLOYMENT AGENCY

Full-time equated classified positions 1,519.0

Worker's compensation $ 765,000

Building occupancy and rent 9,812,800

Unemployment program--1,441.7 FTE positions 94,215,100

Advocacy assistance program--8.0 FTE positions 1,533,300

Special audit and collections program--34.0 FTE

positions 2,144,900

Training program for agency staff--2.1 FTE

positions 2,778,800

Expanded fraud control program--33.2 FTE

positions 2,455,800

GROSS APPROPRIATION $ 113,705,700

Appropriated from:

Interdepartmental grant revenues:

IDG from family independence agency 4,034,400

Federal revenues:

DOL, employment and training administration 515,800

DOL, unemployment insurance 94,635,500

Federal Reed act funds 4,125,700

Special revenue funds:

Contingent fund, penalty and interest account 10,394,300

State general fund/general purpose $ 0

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 $285,338,400.00 and state appropriations to be paid to local units of government are as follows:

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

Arts and cultural grants $ 10,000,000

Fire protection grants 6,675,000

Liquor law enforcement 6,000,000

Local manufactured housing inspections 250,000

Remonumentation grants 5,000,000

Subgrantees 200,000

Total consumer and industry services $ 28,125,000 (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. 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. 203. As used in this bill:

(a) "AFC" means adult foster care.

(b) "Department" means the department of consumer and industry services.

(c) "DOL" means the United States department of labor.

(d) "Fiscal agencies" means Michigan house fiscal agency and Michigan senate fiscal agency.

(e) "FTE" means full-time equated.

(f) "IDG" means interdepartmental grant.

(g) "MES" means Michigan employment security.

(h) "OSHA" means the United States department of labor occupational safety and health administration.

Sec. 204. (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. 205. 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. 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 act. 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.

Sec. 208. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $23,500,000.00 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 $12,200,000.00 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 $180,800.00 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 $50,000.00 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.

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

Sec. 301. The appropriation in part 1 for fire protection grants from the liquor purchase revolving fund shall be appropriated to cities, villages, and townships with state-owned facilities for fire services, instead of taxes, in accordance with 1977 PA 289, MCL 141.951 to 141.956.

Sec. 302. The funds collected by the financial institutions bureau in connection with a conservatorship pursuant to section 32 of the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, MCL 445.1682, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 303. The funds collected by the department from corporations being liquidated pursuant to the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be appropriated for all expenses necessary to provide for the required services. Funds are available for expenditure when they are received by the department of treasury and shall not lapse to the general fund at the end of the fiscal year.

Sec. 304. The department may make available to interested entities otherwise unavailable customized listings of nonconfidential information in its possession, such as names and addresses of licensees, and charge for this information as follows: base fee for 1 to 1,000 records at the cost to the department; 1,001 to 10,000 records at 2.5 cents per record; and 10,001 or more records at .5 cents per record. The revenue received from this service may be used to offset expenses of programs as appropriated in part 1. The balance of this revenue collected and unexpended at the end of the fiscal year shall revert to the appropriate restricted revenue account or fund or, in absence of such an account or fund, to the general fund. The department shall submit an annual report on or before June 1, 2001 to the regulatory subcommittees of the house and senate appropriations committees that states the amount of revenue received from the sale of information.

Sec. 305. The appropriation in part 1 may be used for per diem payments to the members of commissions or boards for a full day of committee work at which a quorum is present or for performing official business as authorized by each respective commission or board within the department of consumer and industry services. The per diem payments shall be $50.00 per day for all commissions and boards.

Sec. 306. (1) The Michigan council for arts and cultural affairs in the department shall administer the arts and cultural grants appropriated in part 1. The council shall provide for fair and independent decisions on arts and cultural grant requests based upon published criteria to evaluate program quality. This criteria shall include a prohibition of art projects that include displays of human wastes on religious symbols, displays of sex acts, and depictions of flag desecration. The council shall seek to award grants on an equitable geographic basis to the extent possible given the quality of grant applications received. Priority shall be given to projects that serve multiple counties and that leverage significant additional public and private investment. Counties, cities, villages, townships, community foundations, and organizations may apply for the following categories of grants:

(a) State arts anchor organizations that serve a statewide or regional audience.

(b) Arts education programs, also known as the arts and learning programs.

(c) Local arts programs.

(d) Arts organization development programs. These programs are designed to encourage self-sufficiency in organizations. Grant awards under this program are limited to 4 grant periods.

(e) Historical organizations and projects.

(f) Zoos.

(g) Publicly owned facilities, excluding stadiums used primarily for professional sports events.

(h) Cultural and community organizations and projects.

(i) Art institutions.

(j) Symphony orchestras.

(k) Multicounty regional arts regranting and programming councils.

(l) Music education camps.

(m) Capital outlay projects.

(2) Applications for arts and cultural grants shall be received by the department, Michigan council for arts and cultural affairs, not later than June 1, 2001.

(3) The appropriation for arts and cultural grants in part 1 and disbursed under this section shall, at a minimum, be matched on an equal dollar-for-dollar basis from local and private contributions paid and received by each awardee receiving grants under this section. The dollar-for-dollar match may include the reasonable value of services, materials, and equipment as allowed under the federal internal revenue code for charitable contributions subject also to the preapproval of such a match by the Michigan council for arts and cultural affairs. The council shall receive proof of the entire amount of the matching funds, services, materials, or equipment by the end of the award period. The council shall submit a report to the regulatory subcommittees of the house and senate appropriations committees regarding those counties, cities, villages, townships, community foundations, and organizations failing to meet their matching requirements by the end of the award period.

(4) Before any amount appropriated for arts and cultural grants in part 1 may be expended for a grant to eligible applicants for the purposes in this section, the department shall execute a grant agreement with each grantee. The grant agreement shall specify the criteria included in this section with which the application complies. The grant agreement shall include a list of the projects funded and the amount of funds each subgrantee, if applicable, will receive for those projects. A contract shall not be executed and dollars shall not be disbursed until 2 weeks after the regulatory subcommittees of the house and senate appropriations committees have received a copy of the proposed contract.

(5) By November 1, 2000, the department shall report to the regulatory subcommittees of the house and senate appropriations committees on how the council intends to implement the provisions of this section, including the process for evaluating organization quality and efforts to achieve an equitable geographic distribution of grants.

(6) By not later than one month after the grant application deadline, the department shall provide a list of all grant applications, by county, to the regulatory subcommittees of the house and senate appropriations committees. The department shall, at least 30 days before the award of any grant, provide the regulatory subcommittees of the house and senate appropriations committees a list of all proposed grant awardees.

(7) Counties, cities, villages, townships, community foundations, and organizations receiving funds under this section shall provide the following reports to the Michigan council for arts and cultural affairs and to the regulatory subcommittees of the house and senate appropriations committees:

(a) A final report covering the grant period and due within 30 days after the end of the grant period indicating at least the following:

(i) Revenues and expenditures, indicating whether revenues are from private donations or fees.

(ii) Number of employees.

(iii) Number of new hires.

(b) For awardees receiving grants greater than $100,000.00, a copy of the awardee's annual report and audit report for the fiscal year in which the majority of the grant took place due within 90 days after the end of the awardee's fiscal year. The audit report shall include an audit of grant funds. A representative sampling of grant agreements shall be audited by the state auditor general. The audit report shall be submitted to the regulatory subcommittees of the house and senate appropriations committees for review. These awardees shall also submit the information in subdivision (a) on a quarterly basis for the immediately preceding quarter due on January 7, 2001, April 7, 2001, July 7, 2001, and October 7, 2001.

(8) The recipients of grant funds under this section shall be announced by the department by September 15, 2001.

(9) A grant awarded under this section and the matching funds which conferred eligibility for the grant award shall be used by the recipient of the grant award and shall not be redistributed by that recipient to any other entity unless specifically provided for in the grant agreement between the funded grant awardee and the Michigan council for arts and cultural affairs.

(10) The applicants for arts and cultural grant funds shall be charged a nonrefundable application fee of $100.00 or 1% of the grant, whichever is less. The application fee may be used by the department to recover direct and indirect costs as appropriated in part 1.

(11) From the funds appropriated in part 1 for arts and cultural grants, organizations receiving grants within the state arts anchor organization category for either the fiscal year ending September 30, 2000 or the fiscal year ending September 30, 2001 shall not receive a combined grant award from this and any other Michigan council for arts and cultural affairs grant categories, with the exception of the partnership program, in excess of 19.8% of the organization's operating revenue. For the purposes of this subsection, "operating revenue" shall be defined in the same manner as it was defined during the fiscal year 1999 state arts anchor organization application process. It is the intent of the legislature that the Michigan council for arts and cultural affairs take appropriate steps to ensure that all organizations receiving state arts anchor organization grants have combined grant awards, as defined above, of no more than 15.0% of operating revenue for the fiscal year ending September 30, 2005 and beyond.

Sec. 307. The department may receive and expend contributions from public, private, and federal sources, except state agencies, for the purpose of acquiring or constructing art objects or promoting or preserving the arts in or on state properties. Expenditures of any funds received shall be consistent with the purposes of the Faxon-McNamee art in public places act, 1980 PA 105, MCL 18.71 to 18.81. Any funds received under this section are considered a work project account and may be carried forward into the succeeding fiscal year.

Sec. 308. The Michigan state housing development authority shall annually present a report to the regulatory subcommittees of the house and senate appropriations committees on the status of the authority's housing production goals under all financing programs established or administered by the authority. The report shall give special attention to efforts to raise affordable multifamily housing production goals.

Sec. 309. The department shall assess and collect fees in the licensing and regulation of child care organizations as defined in 1973 PA 116, MCL 722.111 to 722.128, and adult foster care facilities as defined in the adult foster care facility licensing act, 1979 PA 218, MCL 400.701 to 400.737. Fees collected by the department shall not exceed the deducts in part 1 and shall be used exclusively for the purpose of licensing and regulating child care organizations and adult foster care facilities.

Sec. 310. The appropriation in part 1 for the department, bureau of safety and regulation, safety education and training division, includes funding for on-site consultation and education and training programs. The appropriation in part 1 anticipates that 90% of the on-site consultation program costs and 50% of the education and training program costs will be supported by federal OSHA funds and the remaining 10% and 50% respectively will be supported by safety education and training funds. If federal OSHA funding does not become available to cover up to 90% of the program costs for on-site consultation and 50% for education and training, up to 50% of the program costs for on-site consultation and 90% of the program costs for education and training may be paid from the safety education and training fund as a match for available federal funds.

Sec. 311. The funds collected by the department for licenses, permits, and other elevator regulation fees set forth in R408.8151 of the Michigan administrative code and as determined under section 8 of 1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL 408.816, that are unexpended at the end of the fiscal year shall carry forward to the subsequent fiscal year. The department shall submit a report on an annual basis to the regulatory subcommittees of the house and senate appropriations committees on the amount of funds available under this section.

Sec. 312. If the revenue collected by the department for occupational safety and health, health systems administration, or radiological health administration and projects from fees and collections exceeds the amount appropriated in part 1, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.

Sec. 313. Money appropriated under this bill for fire safety programs shall not be expended unless, in accordance with section 2c of the fire prevention code, 1941 PA 207, MCL 29.2c, inspection and plan review fees will be charged according to the following schedule:

Operation and maintenance inspection fee

Facility type Facility size Fee

Hospitals Any $8.00 per bed

Plan review and construction inspection fees for hospitals and schools

Project cost range Fee

$101,000.00 or less minimum fee of $125.00

$101,001.00 to $1,500,000.00 $1.24 per $1,000.00

$1,500,001.00 to $10,000,000 $0.90 per $1,000.00

$10,000,001.00 or more $0.70 per $1,000.00

or a maximum fee of $50,000.00.

Sec. 314. The department shall furnish the clerk of the house, the secretary of the senate, and the members of the house and senate appropriations committees with any evaluation reports and subsequent approvals or disapprovals of juvenile residential facilities operated by the family independence agency, as required by 1973 PA 116, MCL 722.116. If no evaluations are conducted during the fiscal year, the department shall notify the subcommittees and the fiscal agencies.

Sec. 315. (1) From the amount appropriated in part 1 to health systems administration, the department shall provide funding for not less than 113 inspectors to annually survey and investigate the care and services delivered in nursing homes, county medical care facilities, and hospital long-term care units in accordance with provisions in the public health code, 1978 PA 368, MCL 333.1101 to 333.25211, and federal Medicare and Medicaid certification standards.

(2) The department, in keeping with the severity of the allegations, shall investigate complaints alleging poor care and services occurring on nights or weekends in nursing homes, county medical care facilities, and hospital long-term care units by conducting on-site investigations on nights or weekends.

Sec. 316. If the revenue collected by the department from licensing and regulation fees exceeds the amount appropriated in part 1, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.

Sec. 317. Funds earned or authorized by the United States department of labor in excess of the gross appropriation in part 1 for the Michigan unemployment 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 regulatory subcommittees of the house and senate appropriations committees of the purpose and amount of each grant award.

Sec. 318. The department shall sell documents at a price not to exceed the cost of production and distribution. Money received from the sale of these documents shall revert to the department. The funds are available for expenditure when they are received by the department of treasury and may only be used for costs directly related to the continued updating and distribution of the documents pursuant to this section. This section applies only for the following documents:

(a) Corporation and securities division documents, reports, and papers required or permitted by law pursuant to section 1060(5) of the business corporation act, 1972 PA 284, MCL 450.2060.

(b) The subdivision control manual, the state boundary commission operations manual, and other local government assistance manuals.

(c) The Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1101 to 436.2303, with amendments.

(d) The mobile home commission act, 1987 PA 96, MCL 125.2301 to 125.2349; the business corporation act, 1972 PA284, MCL 450.1101 to 450.2098; the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192; and the uniform securities act, 1964 PA 265, MCL 451.501 to 451.818.

(e) Labor law books.

(f) Worker's compensation health care services rules.

(g) Minimum design standards for health care facilities.

Sec. 319. The department shall report to the appropriations subcommittees and the fiscal agencies on March 1, 2001 and September 1, 2001 on the initial and follow-up surveys conducted on all nursing homes in this state. The report shall include all of the following information:

(a) The number of surveys conducted.

(b) The number requiring follow-up surveys.

(c) The number referred to the Michigan public health institute for remediation.

(d) The number of citations per home.

(e) The number of night and weekend complaints filed.

(f) The number of night and weekend responses to complaints conducted by the department.

(g) The average length of time for the department to respond to a complaint filed against a nursing home.

Sec. 320. The department, bureau of safety and regulation, shall provide an annual report by February 1 of each year to the appropriate house and senate appropriations subcommittees and the fiscal agencies on the number of individuals killed and the number of individuals injured on the job within industries regulated by the bureau during the preceding calendar year.

Sec. 321. The department shall report by November 1, 2000 to the legislature and the fiscal agencies the status of the nursing home complaint investigation backlog and any suggested revisions to current statute or promulgated rules that will assist in improving the effectiveness of the nursing home survey and complaint investigation process.

Sec. 322. As a condition for receiving the general fund/general purpose appropriations in part 1 for health systems administration, the department shall provide assistance to any person making an oral request for a nursing home investigation in putting his or her request into writing, shall initiate investigations on all written nursing home complaints filed with the department within 15 days of receipt of the complaint, and shall provide a written response to the complainant within 30 days of receipt of the written complaint.

Sec. 323. Of the funds appropriated in part 1 for insurance bureau administration, the insurance bureau may utilize up to $15,000.00 in insurance regulatory and licensing fee revenue to pay for legislators designated by the senate majority leader and speaker of the house of representatives to participate in insurance activities coordinated by insurance and legislative associations including the national association of insurance commissioners and the national council of insurance legislators in accordance with section 225 of the insurance code of 1956, 1956 PA 218, MCL 500.225. The insurance commissioner shall maintain a list of the names of and amounts provided to individual legislators pursuant to this section.

Sec. 324. It is the intent of the legislature that the unemployment agency, during its transition to the remote initial claims system, operate a sufficient number of unemployment agency offices, including itinerant or satellite offices, within Michigan's Upper Peninsula to ensure that the citizens of the Upper Peninsula can access these offices without excessive travel.

Sec. 325. The department shall provide for the updating of all relevant files and lists maintained by the Michigan child care clearinghouse. The department shall provide a report to the appropriate house and senate appropriations subcommittees on the costs involved with complying with this section by September 30, 2001.

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