SENATE BILL No. 233







February 21, 2001, Introduced by Senators BENNETT, STILLE, GOUGEON, JOHNSON and MC MANUS and referred to the Committee on Appropriations.





EXECUTIVE BUDGET BILL





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, 2002; 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, 2002, 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 4,194.4

GROSS APPROPRIATION $ 535,631,300

Interdepartmental grant revenues:

Total interdepartmental grants and

intradepartmental transfers 111,800

ADJUSTED GROSS APPROPRIATION $ 535,519,500

Federal revenues:

Total federal revenues 240,725,500

Special revenue funds:

Total private revenues 740,000

Total other state restricted revenues 208,677,200

State general fund/general purpose $ 85,376,800

Sec. 102. EXECUTIVE DIRECTION

Full-time equated unclassified positions 64.5

Full-time equated classified positions 97.0

Unclassified salaries $ 5,621,300

Energy office--10.0 FTE positions 2,609,500 Executive director programs--12.0 FTE positions 1,957,100

Policy development--13.0 FTE positions 1,706,400

Utility consumer representation 550,000

Regulatory efficiency improvements/backlog

reduction initiative 750,000

MES board of review program--21.0 FTE positions 1,740,800

Bureau of hearings--41.0 FTE positions 4,351,400

GROSS APPROPRIATION $ 19,286,500

Appropriated from:

Federal revenues:

DOE-OEERE, multiple grants 2,165,700

DOL-ETA, unemployment insurance 2,154,800 DOL, multiple grants for safety and health 158,400

Special revenue funds:

Bank fees 190,600

Boiler fees 76,000

Construction code fund 428,600

Consumer finance fees 103,400

Corporation fees 503,400

Credit union fees 156,800

Elevator fees 30,100

Fees and collections/asbestos 10,100

Health professions regulatory fund 1,280,900

Health systems fees and collections 60,300

Insurance regulatory fees 603,300

Licensing and regulation fees 551,200

Liquor license fees 100,000

Liquor purchase revolving fund 1,320,800

Manufactured housing commission fees 136,000

Michigan state housing development authority

fees and charges 362,700

Motor carrier fees 27,300

Public utility assessments 2,000,500

Safety, education and training fund 226,900

Second injury fund 67,100

Securities fees 157,500

Self-insurers security fund 17,700

Silicosis and dust disease fund 26,100

Utility consumer representation fund 550,000

Worker's compensation administrative revolving

fund 57,700

State general fund/general purpose $ 5,762,600 Sec. 103. COUNCIL FOR ARTS AND CULTURAL AFFAIRS

Full-time equated classified positions 10.0

Administration--10.0 FTE positions $ 989,800

Arts and cultural grants 25,648,700

GROSS APPROPRIATION $ 26,638,500

Appropriated from:

Federal revenues:

NFAH-NEA, promotion of the arts, state and

regional programs 700,000

Special revenue funds:

State general fund/general purpose $ 25,938,500

Sec. 104. FIRE SAFETY

Full-time equated classified positions 61.0

Office of fire safety--61.0 FTE positions $ 4,808,700

GROSS APPROPRIATION $ 4,808,700

Appropriated from:

Interdepartmental grant revenues:

IDG from department of community health, inspection

contract 111,800

Federal revenues:

Federal funds 899,500

Special revenue funds:

Fire alarm regulation fees 89,300 Fire service fees 2,053,800

State general fund/general purpose $ 1,654,300

Sec. 105. MANAGEMENT SERVICES

Full-time equated classified positions 187.0

Administrative services--84.0 FTE positions $ 6,046,800

Technology support--103.0 FTE positions 13,665,800

Health services information systems 750,000

Office of financial and insurance services

automation 750,000

Building occupancy charges - property

development services 7,731,600

Rent 7,554,300 Worker's compensation 952,800

Special project advances 740,00

GROSS APPROPRIATION $ 38,191,300

Appropriated from:

Federal revenues:

DOL-ETA, unemployment insurance 345,300

DOL-multiple grants for safety and health 491,700

Federal funds 394,000

HHS, federal funds 66,000

Special revenue funds:

Private-special project advances 740,000

Bank fees 468,100

Boiler fee revenue 286,000

Construction code fund 1,339,600

Consumer finance fees 190,300

Corporation fees 2,325,700

Credit union fees 340,800

Elevator fees 317,600

Fees and collections/asbestos 87,400

Health professions regulatory fund. 3,433,900

Health systems fees and collections 612,300

Insurance regulatory fees 1,848,200

Licensing and regulation fees 1,963,000

Liquor purchase revolving fund 8,648,100

Manufactured housing commission fees 303,100

Michigan state housing development authority

fees and charges 3,141,400

Motor carrier fees 287,000

Public utility assessments 2,580,300

Safety education and training fund 770,900

Second injury fund 526,600

Security fees 319,700

Self insurers' security fund 139,100

Silicosis and dust disease fund 203,500

Tax tribunal fees 67,200

Worker's compensation administrative revolving

fund 1,384,300

State general fund/general purpose $ 4,570,200

Sec. 106. FINANCIAL AND INSURANCE SERVICES

Full-time equated classified positions 286.0

Administration--27.0 FTE positions $ 3,008,600

Policy and consumer services--29.0 FTE positions 2,291,300

Securities regulation--20.0 FTE positions 2,304,400

Bank regulation-49.0 FTE positions 5,475,200

Credit union regulation--43.0 FTE positions 3,802,400

Consumer finance regulation--21.0 FTE positions 1,953,500

Health plans--15.0 FTE positions 1,348,900

Insurance financial evaluation--46.0 FTE

positions 5,144,400

Insurance licensing and enforcement--36.0 FTE

positions 3,549,000

GROSS APPROPRIATION $ 28,877,700

Appropriated from:

Federal revenues:

Federal funds 50,600

Special revenue funds:

Bank fees 6,297,300

Consumer finance fees 2,282,500

Credit union fees 4,504,900

Insurance continuing education fees 543,300

Insurance licensing and regulation fees 2,690,800

Insurance regulatory fees 9,682,300

Multiple employer welfare arrangement 66,000

Securities 2,760,000

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 $ 15,824,300

GROSS APPROPRIATION $ 15,824,300

Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

DOE-OEERE, multiple grants 149,800

DOT-RSPA, gas pipeline safety 281,500

Special revenue funds:

Motor carrier fees 1,898,800

Public utility assessments 13,494,200

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 $ 2,927,700

Liquor licensing and enforcement-140.0

FTE positions 10,947,600

Liquor law enforcement grants 6,000,000

Grant to department of agriculture for wine industry

council 457,200

GROSS APPROPRIATION $ 20,332,500

Appropriated from:

Special revenue funds:

Liquor license revenue 11,068,600

Liquor purchase revolving fund 8,806,700

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 $ 72,000,000

Housing and rental assistance program--227.0 FTE

positions 23,224,500

Automatic data processing-7.0 FTE positions 1,006,900

Homeless program 5,290,800

GROSS APPROPRIATION $ 101,522,200

Appropriated from:

Federal revenues:

HUD, lower income housing assistance program 86,495,400

Special revenue funds:

Michigan state housing development authority

fees and charges 15,026,800

State general fund/general purpose $ 0

Sec. 110. TAX TRIBUNAL

Full-time equated classified positions 14.0

Operations--14.0 FTE positions $ 1,654,600

GROSS APPROPRIATION $ 1,654,600

Appropriated from:

Special revenue funds:

Tax tribunal fees 635,500

State general fund/general purpose $ 1,019,100

Sec. 111. GRANTS

Fire protection grants $ 7,421,000

GROSS APPROPRIATION $ 7,421,000

Appropriated from:

Special revenue funds:

Liquor purchase revolving fund 7,421,000

State general fund/general purpose $ 0

Sec. 112. HEALTH REGULATORY SYSTEMS

Full-time equated classified positions 344.0

Health systems administration--181.0

FTE positions $ 17,300,100

Nursing home quality incentive grants--3.0 FTE

positions 10,005,500

Emergency medical services program state staff--

7.0 FTE positions 900,100

Radiological health administration and projects--

24.0 FTE positions 1,997,700

Substance abuse program administration-4.0 FTE

positions 412,100

Emergency medical services grants and contracts 1,062,100

Health services--125.0 FTE positions 13,300,500

GROSS APPROPRIATION $ 44,978,100

Appropriated from:

Federal revenues:

Federal funds 18,404,700

Special revenue funds:

Controlled substance license fees 1,353,000

Health professions regulatory fund 10,624,100

Health systems fees and collections 3,782,100

Nurse professional fund 452,000

State general fund/general purpose $ 10,362,200

Sec. 113. REGULATORY SERVICES

Full-time equated classified positions 313.0

AFC, children's welfare and day care

licensure--313.0 FTE positions $ 26,254,900

GROSS APPROPRIATION $ 26,254,900

Appropriated from:

Federal revenues:

HHS, federal funds 10,762,500

Special revenue funds:

Health systems fees and collections 156,800

Licensing fees 495,500

State general fund/general purpose $ 14,840,100

Sec. 114. OCCUPATIONAL REGULATION

Full-time equated classified positions 332.0

Commissions and boards $ 49,700

Code enforcement--99.0 FTE positions 7,921,200

Code enforcement flexibility 1,181,200

Boiler inspection program--18.0 FTE positions 1,555,700

Elevator inspection program--23.0 FTE positions 1,870,800

Commercial services--154.0 FTE positions 13,818,900

Local manufactured housing communities

inspections 250,000 Manufactured housing and land resources

program--26.0 FTE positions 2,610,300 Property development group--12.0 FTE positions 1,328,300

Remonumentation grants 6,000,000

GROSS APPROPRIATION $ 36,586,100

Appropriated from:

Special revenue funds:

Boiler fee revenue 1,703,300

Construction code fund 9,488,200

Corporation fees 4,889,100

Elevator fees 1,979,300

Homeowner construction lien recovery fund 1,532,800 Licensing and regulation fees 7,341,700

Limited liability partnership revenue 10,000

Manufactured housing commission fees 2,258,100

Property development fees 239,500

Remonumentation fees 6,600,500

Real estate appraiser continuing education fund 45,000

Real estate education fund 217,500

State general fund/general purpose $ 281,100

Sec. 115. EMPLOYMENT RELATIONS

Full-time equated classified positions 28.0

Fact finding and arbitration $ 144,300

Employment and labor relations--28.0 FTE positions 2,996,400

GROSS APPROPRIATION $ 3,140,700

Appropriated from:

Federal revenues:

EEOC, federal funds 10,000

Special revenue funds:

State general fund/general purpose $ 3,130,700

Sec. 116. SAFETY AND REGULATION

Full-time equated classified positions 283.0

Commissions and boards $ 21,400

Employment standards enforcement--39.0 FTE

positions 2,701,900

Subgrantees 1,226,900

Occupational safety and health--244.0 FTE

positions 21,489,500

GROSS APPROPRIATION $ 25,439,700

Appropriated from:

Federal revenues:

DOL, multiple grants for safety and health 10,946,000

Special revenue funds:

Fees and collections/asbestos 694,200

Safety education and training fund 6,009,800

State general fund/general purpose $ 7,789,700

Sec. 117. WORKER'S DISABILITY COMPENSATION

Full-time equated classified positions 171.4

Administration--119.0 FTE positions $ 8,567,300

Board of magistrates administration--8.0 FTE

positions 1,864,700

Appellate commission administration-11.4 FTE

positions 874,000

Supplemental benefit fund 1,300,000

Insurance funds administration--33.0 FTE positions 5,064,000

Automatic data processing 506,000

Grant to the department of career development -

hire the handicapped program 50,000

GROSS APPROPRIATION $ 18,226,000

Appropriated from:

Special revenue funds:

Second injury fund 3,341,800

Self insurers' security fund 911,400

Silicosis and dust disease fund 1,366,800

Worker's compensation administrative revolving

fund 2,148,700

State general fund/general purpose $ 10,457,300

Sec. 118. UNEMPLOYMENT AGENCY

Full-time equated classified positions 1,512.0

Worker's compensation $ 706,200

Rent 6,127,100

Building occupancy changes - property development

service 3,640,000

Unemployment program--1,434.7 FTE positions 97,306,000

Advocacy assistance program--8.0 FTE positions 1,550,200

Special audit and collections program--34.0 FTE

positions 2,225,600

Training program for agency staff--2.1 FTE

positions 2,784,800

Expanded fraud control program--33.2 FTE

positions 2,537,600

GROSS APPROPRIATION $ 116,877,500

Appropriated from:

Federal revenues:

DOL, employment and training administration 532,500

DOL, unemployment insurance 101,457,300

Federal Reed act funds 4,259,800

Special revenue funds:

Contingent fund, penalty and interest account 10,627,900

State general fund/general purpose $ 0

Sec. 119. BUDGETARY SAVINGS

Budgetary savings $ (429,000)

GROSS APPROPRIATION $ (429,000)

Appropriated from:

Special revenue funds:

State general fund/general purpose $ (429,000)

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2001-2002 is $294,054,000.00 and state spending from state resources to be paid to local units of government for fiscal year 2001-2002 is $34,871,000.00. The itemized statement below identifies appropriations from which spending to units of local government will occur:

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

Arts and cultural grants $ 15,000,000

Fire protection grants 7,421,000

Liquor law enforcement 6,000,000

Local manufactured housing inspections 250,000

Remonumentation grants 6,000,000

Subgrantees 200,000

Total department of consumer and industry

services $ 34,871,000 Sec. 202. The appropriations 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) "DOE" means the United States department of energy.

(d) "DOE-OEERE" means the DOE office of energy efficiency and renewable energy.

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

(f) "DOL- ETA" means the DOL employment and training administration.

(g) "DOL-OSHA" means the DOL occupational safety and health administration.

(h) "DOT" means the United States department of transportation.

(i) "DOT-RSPA" means the DOT research and special programs administration.

(j) "EEOC" means the equal employment opportunity commission.

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

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

(m) "HHS" means the United States department of health and human services.

(n) "HUD" means the United States department of housing and urban development.

(o) "IDG" means interdepartmental grant.

(p) "MES" means Michigan employment security.

(q) "NFAH" means the national foundation of the arts and the humanities.

(r) "NFAH-NEA" means the NFAH national endowment for the arts.

(s) "OSHA" means the DOL occupational safety and health administration.

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) 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 under 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 under 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 under 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 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

Sec. 206. Unless otherwise specified, the department shall use the Internet to fulfill the reporting requirements of 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 an Internet or Intranet site. Quarterly, the department shall provide to the appropriations subcommittee members, state budget office, and the fiscal agencies an electronic and paper copy listing of the reports submitted during the most recent 3-month period along with the Internet or Intranet site of each report, if any.

Section 207. (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.

(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, cause loss of revenue to the state, result in the inability of the state to receive federal funds, or would necessitate additional expenditures that exceed any savings from maintaining a vacancy. The state budget director shall report by the thirtieth of each month to the chairpersons of the senate and house standing committees on appropriations the number of exceptions to the hiring freeze approved during the previous month and the reasons to justify the exception.

Section 208. (1) The negative appropriation for budgetary savings in part 1 shall be satisfied by savings from the hiring freeze imposed in section 207 and, if necessary, by other savings identified by the department director and approved by the state budget director.

(2) Appropriation authorizations shall be adjusted after the approval of transfers by the legislature 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 office of financial and insurance services 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, 2002 to the state budget office, and all members of the appropriate 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, including science museums/centers, may apply for the following categories of grants:

(a) Anchor organization program for organizations that serve a statewide audience. Anchor organizations shall demonstrate a commitment to education, to mentoring smaller organizations, and to reaching underserved audiences.

(b) Arts projects program.

(c) Arts and learning program.

(d) Artists in schools program.

(e) Arts organization development program.

(f) Capital improvement projects for cities, villages, and townships (CTV) program.

(g) Local, regional, or statewide arts agencies services program.

(h) Regional regranting program.

(i) Partnership program.

(j) Discretionary grants program.

(k) Rural arts and cultural projects.

(2) The council shall establish a regional services provider subcategory within the arts projects program to serve mid-level and larger organizations that serve a regional audience. Organizations receiving grants within this subcategory shall demonstrate that they have regional impact as well as a commitment to education, to mentoring smaller organizations, and to reaching underserved audiences.

(3) Potential applicants, including anchor organizations, that are considered ineligible to apply for grants and applicants that are unsuccessful in obtaining a grant shall be provided by the council with the following:

(a) A written rationale as to why the potential applicant was considered ineligible or why the applicant's grant was not funded.

(b) A description of actions the potential applicant or applicant needs to take in order to become eligible or to receive funding in future years.

(4) The council shall distribute the funds appropriated in part 1 in a manner which achieves the following criteria:

(a) Supports the development of the regional services provider subcategory and provides sufficient funding to organizations meeting the criteria for this subcategory as described in subsection (2) and the council's guidelines.

(b) Preserves the funding capacity for the council to provide sufficient funding to new applicants for the anchor organization program that meet the criteria for this category as described in subsection (1)(a) and the council's guidelines.

(5) Funds allocated outside of the categories described in subsection (4)(a) and (b) shall be allocated to the remaining grant categories in the same general proportions as the council has allocated funding to these categories in recent fiscal years.

(6) 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 state budget office and all members of the appropriate 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.

(7) 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. All members of the appropriate subcommittees of the house and senate appropriations committees shall receive a summary of the projects funded for each grant recipient by November 1, 2001.

(8) By February 1, 2002, the department shall report to the state budget office and all members of the appropriate subcommittees of the house and senate appropriations committees on how the council intends to implement the arts and cultural grants program for the following fiscal year, including the process for evaluating organization quality, efforts to achieve an equitable geographic distribution of grants, and a summary of any revisions to the guidelines for the council's grant programs. The department shall submit copies of the guidelines for each grant category to the state budget office and all members of the appropriate subcommittees by February 1, 2002.

(9) The department shall submit a report to the state budget office and all members of the appropriate house and senate appropriations subcommittees and the fiscal agencies by October 1, 2001, listing the grant applicants under this section. The report shall include the following:

(a) The amount requested by the applicant.

(b) Any amount awarded to the applicant.

(c) The grant category under which the applicant applied.

(d) The county in which the organization resides.

(e) The expected number of patrons during the grant period.

(f) The amount of matching funds proposed to be contributed by the applicant.

(g) The organization's score as determined by the relevant peer review panel during the application evaluation process.

(10) By September 1, 2002, the department shall submit to the state budget office, fiscal agencies and to all members of the appropriate house and senate appropriations subcommittees a summary of the regranted awards made by regranting organizations from funds appropriated in part 1. For each regranting organization, the report shall include the following:

(a) The name of each grantee.

(b) The amount received by the grantee.

(c) The county in which the grantee resides.

(11) 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 all members of the appropriate subcommittees of the house and senate appropriations committees and the fiscal agencies:

(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.

(iv) Number of patrons attracted during the grant period.

(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 state budget office and all members of the appropriate 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, April 7, July 7, and October 7 of each year.

(12) The recipients of grant funds under this section shall be announced by the department by October 1, 2001. The department shall, within 1 day following the final council vote, provide all members of the appropriate subcommittees of the house and senate appropriations committees and each legislator whose district is receiving a grant with a list of grant awardees.

(13) 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.

(14) 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.

(15) It is the intent of the legislature that the Michigan council for arts and cultural affairs continue to take appropriate steps to ensure that all organizations receiving state arts anchor organization grants have combined grant awards, as defined in subsection (17), of no more than 15.0% of operating revenue for the fiscal year ending September 30, 2005 and beyond. As used in this subsection, "operating revenue" is defined in the same manner as it was defined during the fiscal year 2001 state arts anchor organization application process.

(16) The council shall continue and expand its efforts to encourage and support nonprofit arts and cultural organizations transitioning from solely volunteer-based organizations to professional directed operations. This includes the provision of funds and services from the arts organization development, partnership, arts projects, regional services provider, and regional regranting programs as well as the rural arts and culture initiative to support professional development within these organizations. Criteria for support include the requirement of collaboration between these organizations and other community organizations.

(17) Any organizations receiving grants within the anchor organization program category in excess of 10.0% of their operating revenue, as defined in subsection (15), for the fiscal year ending September 30, 2001, shall not receive a combined grant award from all grant categories, except the partnership program, that is greater than the combined grant award from these categories that the organization received for the fiscal year ending September 30, 2001.

(18) The council shall make available to an awardee any written comments that are available regarding that awardee's application and peer review process.

(19) The council shall provide for fair, equitable, and efficient distribution of funds granted through the regional regranting program. The council shall provide for an annual assessment of grant management and distribution of mini-grant awards by designated regional regranting agencies and review the methodology employed and report these findings to the state budget office and all members of the appropriate house and senate subcommittees of the appropriations committee.

(20) The council shall use its best efforts to reestablish an arts organization development program which provides funding for organizations that deliver services to cultural groups and individual artists in all disciplines and that foster long-term development of a community or region. Projects and programs funded through this program shall be designed to strengthen Michigan families and communities by ensuring full public access to quality arts and cultural activities, promoting cultural tourism, and providing for quality arts and cultural education.

(21) The council shall use its best efforts to provide total grant awards in the anchor organization program at a level not to exceed 65% of the total amount appropriated for arts and cultural grants.

(22) The council shall assess its granting processes and procedures to strengthen consumer and industry access to arts and cultural information, services, and funding opportunities and shall explore new technology applications. The council shall report these findings and shall provide a progress report on steps taken to implement the new initiatives prescribed by the legislature in this section by February 1, 2002, to the state budget office and all members of the appropriate appropriations subcommittees of the house and senate appropriations committees.

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 state budget office and all members of the appropriate 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 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 R 408.8151 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 state budget office, and all members of the appropriate 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 $12.00 per bed

Plan review and construction inspection fees for hospitals and schools

Project cost range Fee

$101,000.00 or less minimum fee of $155.00

$101,001.00 to $1,500,000.00 $1.60 per $1,000.00

$1,500,001.00 to $10,000,000 $1.30 per $1,000.00

$10,000,001.00 or more $1.10 per $1,000.00

or a maximum fee of $60,000.00.

Sec. 314. The department shall furnish the state budget office, clerk of the house, the secretary of the senate, and all members of the house and senate appropriations committees with a summary of 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 state budget office, fiscal agencies and all members of the appropriate subcommittees of the house and senate appropriation committees.

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 state budget office and all members of the appropriate 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 PA 284, 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 state budget office, the fiscal agencies and all members of the appropriations subcommittees on March 1, 2002 and September 1, 2002 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.

(h) The number and percentage of citations appealed.

(i) The number and percentage of citations overturned and/or modified.

Sec. 320. The department, bureau of safety and regulation, shall provide an annual report by February 1 of each year to the state budget office, fiscal agencies and to all members of the appropriate house and senate appropriations subcommittees 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, 2001 to the state budget office, the fiscal agencies, and all members of the appropriations subcommittees the status of the nursing home complaint investigation backlog.

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. The unemployment agency, during its transition to the remote initial claims system, may operate 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 or, in cases where unemployment claims are filed or renewed by phone, without excessive long distance toll charges.

Sec. 324. The department shall continue to work with grantees supported through the appropriation in part 1 for emergency medical services grants and contracts to ensure that a sufficient number of qualified emergency medical services personnel exist to serve rural areas of the state.

Sec. 325. (1) Of the funds appropriated in part 1 to the office of financial and insurance services created under Executive Order No. 4 of 2000, the funds allocated to the office of financial and insurance services and the commissioner of the office of financial and insurance services under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, shall be accounted for separately by the department from any other funds of the office of financial and insurance services and shall be separated and allocated as restricted funds to be held and expended only in the manner provided for under section 225 of the insurance code of 1956, 1956 PA 218, MCL 500.225, and this bill.

(2) The director shall report to the state budget office and all members of the appropriate house and senate appropriations subcommittee by February 1, 2002 regarding the expenditures for the previous fiscal year from insurance regulatory fees for the following:

(a) The executive direction unit.

(b) The management services unit.

(c) The salary and expenditures of the commissioner of financial and insurance services.

Sec. 326. The department shall semiannually provide for joint training with nursing home surveyors and providers on at least 1 of the 10 most frequently issued federal citations in this state during the past calendar year. The department shall provide a mechanism to measure the effect of the training and shall report to the state budget office and all members of the appropriations subcommittees on the effect of the training by January 15, 2002.

Sec. 327. Of the funds appropriated in part 1 for nursing home quality incentive grants, no funds shall be distributed to a nursing home under the program unless that nursing home posts the executive summary of the nursing home's last annual inspection in a conspicuous place within the nursing home for public review.

Sec. 328. The unemployment agency shall work collaboratively with the department of career development to ensure each 1-stop center has the ability to assist individuals or respond to inquiries regarding unemployment benefits and the remote initial claims system.

Sec. 329. (1) The department shall post on the Internet the executive summary of the latest inspection for each licensed nursing home.

(2) The department shall work toward posting inspection summaries for licensed day care centers on the Internet.